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:

Pool Products Division

A specific division within a company that focuses on the development, production, and sales of products related to swimming pools, such as pool chemicals, filters, and equipment.

Transfer Prices

The prices at which services, goods, or capital are exchanged between divisions within the same company, often used for accounting and tax purposes.

Parts Division

A segment within a company or manufacturer specializing in the production or distribution of spare and replacement parts for products.

Machine Division

A specialized segment within a manufacturing operation focused on the use of machines for production purposes.