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AMC Corporation currently has an enterprise value of $350 million and $110 million in excess cash. The firm has 25 million shares outstanding and no
AMC Corporation currently has an enterprise value of $350 million and $110 million in excess cash. The firm has 25 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase news will come out that will change AMCs enterprise value to eitber $550 million or $150 million. Suppose AMC waits until after new come out to do share repurchase. WhG is AMCs share price after the repurchase if its enterprise value goes up and what is AMCs share price after the repurchase if its enterprise value declines
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