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Rational Demiconductor has the following market value balance sheet: Rational Demiconductor Balance Sheet (Market values, in s millions) Surplus cash $ 12 $ 0.0 Debt

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Rational Demiconductor has the following market value balance sheet: Rational Demiconductor Balance Sheet (Market values, in s millions) Surplus cash $ 12 $ 0.0 Debt Equity market capitalization Fixed assets and net working capital 21 33 (1 million shares at $33 per share) $ 33 $ 33 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 $15 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

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