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a) Marvel International has assets with a market value of $800 million, $90 million of which are cash. It has debt of $350 million, and
a) Marvel International has assets with a market value of $800 million, $90 million of which are cash. It has debt of $350 million, and 30 million shares outstanding. Assume the firm's market value equal to their book value. i) What is the current stock price of Marvel International? ii) If Marvel International distributes the $90 million as a dividend, then what would be its stock price after the dividend? iii) If the $90 million is use for share repurchase, what is the number of shares outstanding after the repurchase? iv) If the $90 million is use for share repurchase, what would be Marvel International's stock price after the share repurchase? v) If the $90 million is use for share repurchase, what would be the debt-to-equity ratio of Marvel International's after the repurchase
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