New Tech Corporation has assets with a market value of $300 million, $40 million of which are

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New Tech Corporation has assets with a market value of $300 million, $40 million of which are cash. It has debt of $50 million, and 7 million shares outstanding. Assume perfect capital markets and no taxes.

a. What is New Tech Corp.'s current stock price?
b. If Tech Corp distributes $20 million as a dividend, what will its share,

price be after the dividend is paid?
c. If instead, New Tech distributes $20 million as a share repurchase,

what will its share price be once the shares are repurchased?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Posted Date: Apr 20, 2024 09:55 AM

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New Tech Corporation has assets with a market value of $300 million, $40 million of which are

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Answer Absolutely lets analyze New Tech Corporations stock price under the given conditions a Current Stock Price First we need to calculate the compa... View the full answer

Corporate Finance The Core

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