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.

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Definitions:

Psychoneuroimmunology

The study of how psychological, neural, and endocrine processes together affect the immune system and resulting health.

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, including stages of alarm, resistance, and exhaustion.

General Adaptation Syndrome

A three-stage response to stress consisting of alarm, resistance, and exhaustion, theorized by Hans Selye.

Alarm Reaction

The initial stage in the stress response where the body readies itself for fight or flight, part of the General Adaptation Syndrome.