Question
Wyatt Oil has assets with a market value of $600 million, $100 million of which are cash. It has debt of $200 million, and 20
Wyatt Oil has assets with a market value of $600 million, $100 million of which are cash. It has debt of $200 million, and 20 million shares outstanding. Assume perfect capital markets.
A) Wyatt Oil's current stock price is closest to:
B) If Wyatt Oil distributes the $100 million as a dividend, then its stock price after the dividend will be closest to:
C) If Wyatt Oil distributes the $100 million as a share repurchase, then its stock price after the share repurchase will be closest to:
D) If Wyatt Oil distributes the $100 million as a share repurchase, then the number of shares outstanding after the repurchase will be closest to:
E) If Wyatt Oil distributes the $100 million as a dividend, then its debt-to-equity ratio after the dividend will be closest to:
F) If Wyatt Oil distributes the $100 million as a share repurchase, then its debt-to-equity ratio after the share repurchase will be closest to:
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