Use the followlng information to answer Problems 14 to 18: AMC Limited currently has an enterprise value of $400 million and $100 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC's enterprise value to either $600 million or $200 million. 14 What is AMC's share price prior to the share repurchase? 15 16 17 18 What would AMC's share price be after the repurchase if its enterprise value goes up? What would AMC's share price be after the repurchase if its enterprise value declines? *Suppose AMC waits until after the news comes out to do the share repurchase. What would AMC's share price be after the repurchase if its enterprise value goes up? What would AMC's share price be after the repurchase if its enterprise value declines? Suppose AMC management expects good news to come out. Based on your answers to Problems 15 and 16, if management wants to maximise AMC's ultimate share price, will they undertake the repurchase before or after the news comes out? When would management undertake the repurchase if they expect bad news to come out? *Given your answer to Problem 17, what effect would you expect an announcement of a share repurchase to have on the share price? Why