Rational Demiconductor has at this moment one million shares outstanding and the following market-value balance sheet:

Rational Demiconductor Balance Sheet (Market Values, $ millions)
Surplus cash	$ 1.0		$ 0	Debt
Fixed assets and net working capital	10.0		11.0	Equity market capitalization (1 million shares at $11 per share)
	$11.0		$11.0

Assume that Rational wins a lawsuit and is paid $1 million in cash. Its market capitalization rises by that amount. It decides to pay out $2 per share instead of $1 per share.

a.	What happens to Rational

b. What happens to Rationale's stock price if the payout comes as a share repurchase? (Round your answer to the nearest whole number.) 

New stock price