KMS Corporation has assets with a market value of $570 million, $44 million of which are cash. It has debt of $239 million, and 10 million shares outstanding. Assume perfect capital markets.

a. What is its current stockprice?

b. If KMS distributes $44 million as adividend, what will its share price be after the dividend ispaid?

c. Ifinstead, KMS distributes $44 million as a sharerepurchase, what will its share price be once the shares arerepurchased?

d. What will its new marketdebt-equity ratio be after eithertransaction?