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A companys assets have a total market value of 400 mil. of which 40 mil. are cash. The Companys debt amounts to 100 mil. The

A companys assets have a total market value of 400 mil. of which 40 mil. are cash. The Companys debt amounts to 100 mil. The company has 5 million shares.

a. What is the share price of the company?

b. If the company pays out 40 mil. of dividend, what will be the share price after the dividend payment?

c. Rather than distributing cash dividend, the company repurchases stocks worth 40 mil. What will be share price after the repurchase program?

d. What will the companys new market debt-equity ratio be after either transaction?

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