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

question 41

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 dividend,then its stock price after the dividend will be closest to:

• A)$12.50.
• B)$14.00.
• C)$17.50.
• D)$26.50.

Calculate the beginning balance of a cash account given cash payments and collections data.

Perform bank reconciliations to adjust the cash account balance.

Prepare and understand the significance of petty cash funds in business operations.

Understand and apply the concept of cash equivalents in financial reporting.

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Definitions:

Weighted Average Model

A calculation that assigns different weights to different items or data points according to their importance in achieving a more accurate average.

Forecasts

Predictions or estimates of future events or trends, based on analysis of available data and indicators.

Mean Absolute Deviation

A statistical metric that measures the average distance between each data point and the mean of a data set, demonstrating variability.

Weighted Average Model

A calculation model that assigns varying degrees of importance or weights to different data points or variables when computing an average.