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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

image text in transcribed 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 $7 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? (Round your intermediate calculations to the nearest whole number.)

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