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Fioybus, Inc, a manufacturer of fash memory, juat reported that its main production faclty in Taiwan was destroyed in a fre. Athough the giant was

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Fioybus, Inc, a manufacturer of fash memory, juat reported that its main production faclty in Taiwan was destroyed in a fre. Athough the giant was fuly insured, the loss of production wit decrease. Ropous's froe cash fow by $179 milion at the end of this year and by 556 milion at the end of next year. a. If Roybus has 36 millon shares outstanding and a weighled average cost of capital of 12.6%, what change in Roybus's stock price would you expect upon this announceenint? (Assume that the value of Roybus's debt ie not affected by the event) b. Woud you expect to be able to sell Reybus stock on hearing this announcement and make a prefit? Explain. a. If Roybus has 30 milion shares outatanding and a weighted average cost of captal of 12.6%, what change in Roybur's stock price would you oxpect upce this amouncement? (Assume that the valus of Royburid debt is not altecled by the event) The chanos in price per share would be I (Round ta the nearest cent)

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