Use the Following Information to Answer the Question(s)below

question 93

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 the number of shares outstanding after the repurchase will be closest to:

• A)16.0 million.
• B)16.5 million.
• C)17.5 million.
• D)18.0 million.

Comprehend the principles of process redesign for improvement.

Understand the role and advantages of flexible manufacturing systems.

Differentiate between product-focused, process-focused, and repetitive processes.

Analyze the effect of process selection on fixed and variable costs.

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Definitions:

Price Elasticity

A measure of how much the demand for a product changes in response to a change in price, indicating the sensitivity of consumers to price changes.

Product Differentiation

The process through which companies distinguish their products or services from those of competitors, through attributes like quality, design, or branding.

Competitors

Companies or entities that are in the same industry and compete against each other for market share by offering similar products or services.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.