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:

Visual Cliff

An experimental apparatus used to study depth perception and fear of heights in infants and young animals.

Depth Perception

The ability to perceive the world in three dimensions and to judge the distance of objects.

Developmental Norms

Standards or average levels of physical, emotional, or intellectual development at various ages.

Deviations

Departures from the norm or expected patterns which can refer to abnormalities or variations in statistics, behaviors, or conditions.