1. value: 10.00 points Rational Demiconductor has the following market value balance sheet: Rational Demiconductor Balance Sheet (Market Values. S millions) $ 5 $ 0 Detit Equity market capitalization (1 million shares at $35 per Surplus cash Fixed assets and networking capital Assume that Rational wins a lawsuit and is paid $3 million in cash. Its market capitalization rises by that amount. It decides to pay out $8 per share instead of $1 per share. a. What happens Rational's stock price if the payout comes as a cash dividend? (Round your answer to the nearest whole number.) New stock price b. What happens to Rational's stock price if the payout comes as a share repurchase? (Round your answer to the nearest whole number.) New stock price References eBook & Resources Worksheet Difficulty: Basic