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

question 40

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 debt-to-equity ratio after the dividend will be closest to:

• A)0.7.
• B)0.9.
• C)1.0.
• D)1.1.

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Definitions:

Heartfelt Communication

A form of communication that is authentic, honest, and empathetic, aiming to build genuine connections and mutual understanding between individuals.

Gender Barrier

Obstacles that hinder individuals based on their gender from advancing in their career or personal development within professional and social contexts.

Gateways

Entry or access points that enable transition or progress from one state or condition to another.

Functional Specialization

The practice of organizing a workforce where each member or department focuses on a specific set of tasks or expertise, promoting efficiency.