Solution for QID #29572: KMS Corporation has assets with a market value of ?$551 ?mil | StudyHelpMe

KMS Corporation has assets with a market value of ?$551 ?million, ?$40 million of which are cash. It has debt of ?$273 ?million, and 11 million shares outstanding. Assume perfect capital markets. a. What is its current stock? price? b. If KMS distributes ?$40 million as a? dividend, what will its share price be after the dividend is? paid? c. If? instead, KMS distributes ?$40 million as a share? repurchase, what will its share price be once the shares are? repurchased? d. What will its new market? debt-equity ratio be after either? transaction?