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5. KMS Corporation has assets with a market value of $422 million, $36 million of which are cash. It has debt of $186 million and

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5. KMS Corporation has assets with a market value of $422 million, $36 million of which are cash. It has debt of $186 million and 18 million shares outstanding. Assume perfect capital markets. a) What is its current stock price? b) If KMS distributes $36 million as a dividend, what will its share price be after the dividend is paid? c) If instead, KMS distributes $36 million as a share repurchase, what will its share price be once the shares are repurchased? I d) What will its new market debt-equity ratio be after either transaction

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