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:

Cohen's D

A statistic used to quantify the difference between two group means relative to the standard deviation of the sample.

Cohen's D

A measure of effect size that quantifies the difference between two group means in standard deviation units.

Cohen's D

A measure of effect size indicating the standardized difference between two means, often used in psychological and educational research.

Standard Deviation Units

Units of measurement used to express the variability or dispersion of a set of data points around their mean in terms of the standard deviation.