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What is its current stock? price

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Reference no: EM132557191

KMS Corporation has assets with a market value of ?$552 ?million, ?$39 million of which are cash. It has debt of ?$167 ?million, and 14 million shares outstanding. Assume perfect capital markets.

a. What is its current stock? price?
KMS? Corporation's current stock price is ?$................per share. ? (Round to the nearest? cent.)

b. If KMS distributes ?$39 million as a? dividend, what will its share price be after the dividend is? paid?
If KMS distributes ?$39 million as a? dividend, KMS? Corporation's share price after the dividend is paid will be ?$................per share. ?(Round to the nearest? cent.)

c. If? instead, KMS distributes ?$39 million as a share? repurchase, what will its share price be once the shares are? repurchased?
If? instead, KMS distributes ?$39 million as a share? repurchase, KMS? Corporation's share price after the shares are repurchased will be ?$..................per share. ?(Round to the nearest? cent.)

d. What will its new market? debt-equity ratio be after either? transaction?
After either? transaction, the? debt-to-equity ratio is ...................... ?(Round to two decimal? places.)

Reference no: EM132557191

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