Clark Industries has 200 mln shares outstanding, a current share price of $30, and no debt. Clark's management believes that the shares are underpriced, and that the true value is $35 per share. Clark plans to pay $600 min in cash to its shareholders by repurchasing shares at the current market price. Suppose that soon after the transaction is completed, new information comes out that causes investors to agree with management's initial assessment of Clark's value (which was $35 per share). a. (3 points) Explain (provide necessary calculations) why "Other assets" after new information became available are valued at $6400. b. (3 points) Explain why number of shares has decreased from 200 m to 180 m from first column to the last. Provide computations. Before Repurchase 600 After Repurchase 0 5400 After New Information 0 6400 5400 Cash Other assets Total market value of assets Shares (millions) Share Price 6000 200 $30 5400 180 $30 6400 180 $35.56 c. (3 points) Why did share price increase to $35.56 (and not to $35) after new information became available? Clark Industries has 200 mln shares outstanding, a current share price of $30, and no debt. Clark's management believes that the shares are underpriced, and that the true value is $35 per share. Clark plans to pay $600 min in cash to its shareholders by repurchasing shares at the current market price. Suppose that soon after the transaction is completed, new information comes out that causes investors to agree with management's initial assessment of Clark's value (which was $35 per share). a. (3 points) Explain (provide necessary calculations) why "Other assets" after new information became available are valued at $6400. b. (3 points) Explain why number of shares has decreased from 200 m to 180 m from first column to the last. Provide computations. Before Repurchase 600 After Repurchase 0 5400 After New Information 0 6400 5400 Cash Other assets Total market value of assets Shares (millions) Share Price 6000 200 $30 5400 180 $30 6400 180 $35.56 c. (3 points) Why did share price increase to $35.56 (and not to $35) after new information became available