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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.

If Wyatt Oil distributes the $70 million as a dividend, then its debtto-

equity ratio after the dividend will be closest to?

calculation steps?

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