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.

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Definitions:

Canadian Newspapers

Publications that provide news, information, and commentary, specifically focusing on topics and issues relevant to Canada and its regions.

Labour Market

Describes the supply and demand dynamics for workers, including the availability of employment and the need for labor.

Implement Strategy

The process of executing plans or methods to achieve long-term goals or objectives within an organization.

Competitors' Moves

Actions or strategies implemented by rival firms in the marketplace that may affect the competitive balance.