Rational Demiconductor has the following market$-$value balance sheet:

Assume that Rational wins a lawsuit and is paid $$3$ million in cash. Its market capitalization rises by that amount. It decides to pay out

$$10$ per share instead of $$1$ per share.

a$.$ What happens to Rational's stock price if the payout comes as a cash dividend?

b$.$ What happens to Rational's stock price if the payout comes as a share repurchase?

Note: Round your intermediate calculations to the nearest whole number.Rational Demiconductor has the following market$-$value balance sheet:

Rational Demiconductor

Balance Sheet

$($Market Values, in $ millions$)$

Surplus cash $ $7$ $ $0\mathrm{.}0$ Debt

Fixed assets and net working capital $2431$ Equity market capitalization $(1$ million shares at $$31$ per share$)$

$ $31$ $ $31$

Assume that Rational wins a lawsuit and is paid $$3$ million in cash. Its market capitalization rises by that amount. It decides to pay out $$10$ per share instead of $$1$ per share.

What happens to Rational$$s stock price if the payout comes as a cash dividend?

What happens to Rational$$s stock price if the payout comes as a share repurchase?

Note: Round your intermediate calculations to the nearest whole number.