Question
Wyatt Oil has assets with a market value of $600 million, $70 million of which are cash. It has debt of $250 million, and 20
Wyatt Oil has assets with a market value of $600 million, $70 million of which are cash. It has debt of $250 million, and 20 million shares outstanding. Assume perfect capital markets.
1) Wyatt Oil's current stock price is _____?
2) If Wyatt Oil distributes the $70 million as a dividend, then its stock price after the dividend will be ___?
3) If Wyatt Oil distributes the $70 million as a share repurchase, then its stock price after the share repurchase will be____?
4) If Wyatt Oil distributes the $70 million as a share repurchase, then the number of shares outstanding after the repurchase will be____
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