in Cougte Chrome, this page may not function correctly. Click here to learn more. ng 7. Dividends, repurchases, and firm value Remember that the primary goal of a firm is to maximize shareholder wealth by increasing the firm's intrinsc value. Itis thus important to understand the impact of distributions-both in the form of dividends or stook repurchases-on the firm's value. Terracon Environmental currently has no debt Recently, the company sold off ore of its divisions, from which it received $10 millon (extra cash) The company is now considering the repurchase of shares. The current stock price is s10 with 1.5 million shares outstanding for a tota market capitalization of $15 million. Terracon has no other financial assets. Based on the above i nformation, calculate the value of Terracon Environmental's operations (op) sa milion O $7 million O 4s million O $10 milion based on your understanding of stock repurchases, idenitify whether the following statement is true or false when tirms make distributions in the form of dividends, the stock price falls by the value of dividends per share (DPS) distributed, buf the overall shareholder wealth does not decrease This statement s because, fa tirm pays s divildand of s per share, thie ance per sthars of the firm's stosk wilt alby Type here to sesign