Payout policy corporate finance question:

New Tech Corporation has assets with a market value of $300 million, $40 million of which are cash. It has debt of $50 million, and 7 million shares outstanding. Assume perfect capital markets and no taxes.

a. What is New Tech Corp.s current stock price?

b. If Tech Corp distributes $20 million as a dividend, what will its share price be after the dividend is paid?

c. If instead, New Tech distributes $20 million as a share repurchase, what will its share price be once the shares are repurchased?

d. What will the new market debt-equity ratio be after either transaction?