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:

Safety Reports

Documents prepared to detail incidents or conditions that pose a risk to health, safety, or welfare, often used for preventive measures.

Collectivist and Individualist Cultures

Societal frameworks emphasizing the importance of community and collective well-being versus individual rights and achievements.

Group-oriented Messages

Communications designed to appeal to or target a specific group, often with the aim of promoting unity or a shared purpose within that group.

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