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Rational Demiconductor has the following market value balance sheet: Surplus cash Rational Demiconductor Balance Sheet (Market Values, $ milions) 3 4 $ 0 Debt Equity

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Rational Demiconductor has the following market value balance sheet: Surplus cash Rational Demiconductor Balance Sheet (Market Values, $ milions) 3 4 $ 0 Debt Equity market capitalization (1 million shares at $17 per 17 share) 17 Fixed assets and networking capital 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 $5 per share instead of $1 per share. a. What happens to Rational's stock price if the payout comes as a cash dividend? (Round your answer to the nearest whole number.) New stock prices b. What happens to Rational's stock price if the payout comes as a share repurchase? (Round your answer to the nearest whole number.) New stock price $

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