What will be the new share price

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Reference no: EM132040834

KMS Corporation has assets with a market value of $500 million, $32 million of which are cash.It has debt of $129 million, and 10 million shares outstanding. Assume perfect capital markets.

Suppose KMS distributes the $32 million of cash as a share repurchase, what will be the new share price? Round your answer to the nearest cent (e.g., $11.25)

Reference no: EM132040834

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