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Wyatt Oil just reported that a major fire destroyed one of its oil production facilities in Colorado. While the facility was fully insured, the loss
Wyatt Oil just reported that a major fire destroyed one of its oil production facilities in Colorado. While the facility was fully insured, the loss of oil production will decrease Wyatts free cash flow by $120 million at the end of this year and by $80 million at the end of next year. Wyatt has 50 million shares outstanding and has an equity cost of capital of 9%. The expected decrease in Wyatts stock price is closest to [1 point]:
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