1. Fill in the blanks:

• One method of repurchasing shares is the ________, in which the firm lists different prices at which it is prepared to buy shares, and shareholders in turn indicate how many shares they are willing to sell at each price.
• A(n) ________ may occur if a major shareholder desires to sell a large number of shares but the market for the shares is not sufficiently liquid to sustain such a large sale without severely affecting the price.

You may choose from the following list or use your own words: open market share repurchase; payout; greenmail; Dutch auction share repurchase; cash retention; tender offer; blackmail; targeted repurchase; hostile takeover

2. Wyatt Oil has assets with a market value of $600 million, $70 million of which are cash. It has debt of $250 million, and 20 million shares outstanding

1. (4 points) If Wyatt Oil distributes the $70 million as a dividend, what would be its stock price after the dividend?

2. (5 points) If Wyatt Oil distributes the $70 million as a share repurchase, then what would be the number of shares outstanding after the repurchase?