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

question 91

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 stock price after the share repurchase will be closest to:

• A)$11.00.
• B)$12.50.
• C)$14.00.
• D)$17.50.

---

Definitions:

General Burnside

An officer in the Union Army during the American Civil War, known for his distinctive facial hair leading to the term "sideburns."

General McClellan

Refers to George B. McClellan, a Union general during the American Civil War, known for his cautious nature and his role in the Peninsula Campaign.

Western Forces

Military or political powers originating from or associated with Western Europe and/or North America, especially in contrast to those from other regions.

Radical Abolitionists

Individuals or groups that aggressively advocated for the immediate and complete end to slavery in the United States, often employing unconventional methods.