What is its current stock? price

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KMS Corporation has assets with a market value of ?$588 ?million, ?$33 million of which are cash. It has debt of ?$212 ?million, and 14 million shares outstanding. Assume perfect capital markets.

a. What is its current stock? price? $26.86-this is the answer for A.

b. If KMS distributes ?$33 million as a? dividend, what will its share price be after the dividend is? paid?

c. If? instead, KMS distributes ?$33 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?

Reference no: EM132667005

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