AMC Corp. currently has operating assets with a market value of $400 million and $100 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change the firms operating asset value to either $600 million or $200 million. a. What is the firms share price prior to the repurchase? b. What is the firms share price after the repurchase if its asset value goes up? What is the share price after the repurchase if its asset value goes down? c. Suppose AMC waits until after the news comes out to do the share repurchase. What is the share price after the repurchase if the asset value goes up? What is the share price after the repurchase if its asset value goes down? d. Why is the volatility of share price lower in part c. than in part b.? e. Suppose AMCs management expects good news to come out. Based on your answers to parts b. and c., if management acts in the best interest of the firms shareholders, will they repurchase shares before or after the news comes out? f. Suppose AMCs management instead expects bad news to come out. Based on your answers to parts b. and c., if management acts in the best interest of the firms shareholders, will they repurchase shares before or after the news comes out? g. What effect would you expect an announcement of a share repurchase to have on a firms stock price? Why?