AMC Corporation currently has an enterprise value of $400 million and $100 million in excess cash. The firm has 10 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 either $600 million or $200 million.

Question:

Suppose AMC waits until after the news comes out to do the share repurchase. What is AMCs share price after the repurchase if its enterprise value goes up?

What is AMCs share price after the repurchase if its enterprise value declines?