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Problem 10-07 Astock is currently trading for $40. The company has a precarings multiple of 10. There are 100 million shares s shares tanding Your

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Problem 10-07 Astock is currently trading for $40. The company has a precarings multiple of 10. There are 100 million shares s shares tanding Your moindicates that the stock is actually worth $50. The com m on that it will use to od a. After the repurchase, what is the value of the stock, according to your model? Do not found intermediate cations. Round your answer to the east can b. After the repurchase, what is the actual price carrings multiple of the stod Do not found intermediate akulations. Rond you to decimal places c. If the company had used the $310 million to pay a cash dividend instead of doing a repurchase, how would the wood the stock vech i ng to your model Do notron The market value of the wock is now d. If the company had used the $310 million to pay a cash dividend instead of doing a rochie wh e theac e a e dvidende Detroud mediate calculation

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