Value of operations $20,000
Short-term investments $1,000
Debt $6,000 Number of shares 300
(1) What is the stock price before any distribution?
(2) If the company plans on distributing $1,000 million as dividend payments. What will the value of equity be immediately after the distribution? What will the stock price be?
(3) If the company plans on distributing $1,000 million by repurchasing stock. What will the value of equity be immediately after the distribution? What will the stock price be? How many shares will remain after the repurchase?