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Rational Demiconductor has the following market - value balance sheet: Rational Demiconductor Balance Sheet ( Market Values, in $ millions ) Surplus cash $ 1

Rational Demiconductor has the following market-value balance sheet:
Rational Demiconductor
Balance Sheet
(Market Values, in $ millions)
Surplus cash $ 1.0 $ 0 Debt
Fixed assets and net working capital 10.011.0 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.
What happens to Rationals stock price if the payout comes as a cash dividend?
What happens to Rationals stock price if the payout comes as a share repurchase?
Note: Round your intermediate calculations to the nearest whole number.

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