Problem 16-12 Payout policy in perfect capital markets Rational Demiconductor has the following market value balance sheet: Rational Demiconductor Balance Sheet (Market Values, in $ millions) Surplus cash $ 9 $ 0.0 Debt Equity market capitalization Fixed assets and net working capital 23 32 (i million shares at $32 per share) $ 32 $ 32 Assume that Rational wins a lawsuit and is paid $2 million in cash. Its market capitalization rises by that amount. It decides to pay out $11 per share instead of $1 per share. a. What happens to Rational's stock price if the payout comes as a cash dividend? New stock price b. What happens to Rational's stock price if the payout comes as a share repurchase? (Round your intermediate calculations to the nearest whole number.) New stock price