In: Finance
KMS Corporation has assets with a market value of $434 million, $28 million of which are cash. It has debt of $276 million, and 16 million shares outstanding. Assume perfect capital markets. a. What is its current stock price? b. If KMS distributes $28 million as a dividend, what will its share price be after the dividend is paid? c. If instead, KMS distributes $28 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? a. What is its current stock price? KMS Corporation's current stock price is $nothingm per share. (Round to the nearest cent.) b. If KMS distributes $28 million as a dividend, what will its share price be after the dividend is paid? If KMS distributes $28 million as a dividend, KMS Corporation's share price after the dividend is paid will be $nothingm per share. (Round to the nearest cent.) c. If instead, KMS distributes $28 million as a share repurchase, what will its share price be once the shares are repurchased? If instead, KMS distributes $28 million as a share repurchase, KMS Corporation's share price after the shares are repurchased will be $nothingm per share. (Round to the nearest cent.) d. What will its new market debt-equity ratio be after either transaction