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KMS Corporation has assets with a market value of $575 million, $29 million of which are cash. It has debt of $190 million, and 15

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KMS Corporation has assets with a market value of $575 million, $29 million of which are cash. It has debt of $190 million, and 15 million shares outstanding. Assume perfect capital markets. a. What is its current stock price? b. If KMS distributes $29 million as a dividend, what will its share price be after the dividend is paid? c. If instead, KMS distributes $29 million as a share repurchase, what will its share price be once the shares are repurchased? d. What will its new market debt-equity ratio be after either transaction

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