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5. Rational Semiconductor has, at this moment, 1 million shares outstanding and the following market-value balance sheet: lalance Sheet (Market Values, $ Million) lurplus cash

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5. Rational Semiconductor has, at this moment, 1 million shares outstanding and the following market-value balance sheet: lalance Sheet (Market Values, $ Million) lurplus cash 1.0 Debt 0 let Working 10.0 Equity 11.0 :apital & Assets 110 $11.0 Assuming that neither the firm nor its investors pay taxes, answer the following quest I) What is Rational's current share price? II) If Rational now unexpectantly wins a lawsuit and is paid $1 million in cash, its (market value) surplus cash rises to $2.0 million, what is Rational's new pnce? Ill) If Rational decides to pay out all its surplus cash ($2.0 million) as a cash dividend, Rational's ex-dividend share price? IV) If the rm pays out all its surplus cash ($2.0 million) through an offer to repurchas shares at the fair market value per share, what is Rational's post-offer share price': )$10; II) $12; III) $10; IV) $10 )$11; II) $11; III) $9; IV) $11 )$11; II) $12; III) $10; IV) $10 a. b. C. d. )$11; II) $12; III) $10; IV) $12

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