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:

Competence

The ability or skill to do something successfully or efficiently.

Achievement

The accomplishment of a goal or the attainment of higher statuses or levels, often recognized by others through rewards or honors.

Autonomy

The capacity to make an informed, uncoerced decision independently, often regarded as a critical aspect of personal freedom.

Dominance

Refers to the phenomenon where one allele masks the expression of another allele at the same locus in heterozygous individuals.