Rational Demiconductor has the following market-value balance sheet:

Rational Demiconductor Balance Sheet (Market Values, in $ millions)

Surplus cash	$ 4	$ 0	Debt
Fixed assets and net working capital	27 $ 31	31 $ 31	Equity market capitalization (1 million shares at $31 per share)

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 Rationals stock price if the payout comes as a cash dividend?

New stock price

b. What happens to Rationals stock price if the payout comes as a share repurchase? (Round your intermediate calculations to the nearest whole number.)

New stock price