Use the Following Information to Answer the Question(s)below

question 93

Multiple Choice

Use the following information to answer the question(s) below.
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 share repurchase,then the number of shares outstanding after the repurchase will be closest to:

• A)16.0 million.
• B)16.5 million.
• C)17.5 million.
• D)18.0 million.

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Definitions:

Purchase Process

The series of steps that a customer goes through when deciding to buy a product or service, from recognizing a need to post-purchase evaluation.

Memory

The ability to store, retain, and subsequently retrieve information.

Internal Locus

Internal Locus refers to a belief that individuals control their own destiny and outcomes are a result of their actions rather than external factors.

External Locus

A belief system or psychological orientation that attributes success or failure to external factors beyond one's control.