Question 2 (1 point) Xtra Corp. has assets with a market value of $600 million, $90 million of which are cash. It has debt of $300 million, and 30 million shares outstanding. Assume perfect capital markets. Suppose that the company plans to distribute the $90 million to its shareholders either as a dividend or as a share repurchase. If Xtra distributes $90 million as a dividend, what will its share price be on the ex-dividend date? If instead, Xtra distributes $90 million as a share repurchase, what will its share price be once the shares are repurchased? $7.00 on the ex-dividend date: $10.00 after the repurchase $14.00 on the ex-dividend date: $17.50 after the repurchase $16.00 on the ex-dividend date: $20.00 after the repurchase $26.50 on the ex-dividend date: $12.50 after the repurchase None of the above