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

question 82

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 its debt-to-equity ratio after the share repurchase will be closest to:

• A)0.9.
• B)1.0.
• C)1.1.
• D)1.4.

---

Definitions:

Vital Signs

Clinical measurements that indicate the state of a patient's essential bodily functions, including temperature, pulse, respiration, and blood pressure.

Germ Theory

A scientific principle that states many diseases are caused by the presence and actions of specific microorganisms within the body.

Societal Need

A demand or necessity within a society that stems from social, economic, political, or environmental factors.

Military Demand

The requirement or need for military resources and personnel, often influenced by geopolitical developments, defense strategies, and security policies.