AMC Corporation currently has an enterprise value (EV) of 340million and 130 million in excess cash. The firm has 30 millionshares outstanding and no debt. Suppose AMC uses its excess cash torepurchase shares. After the share repurchase, news will come outthat will change AMC's enterprise value to either 540 million or140 million. Suppose AMC waits until after the news comes out to dothe share repurchase. What would AMC's share price be after therepurchase if its enterprise value goes up? What would AMC'sshare price be after the repurchase if its enterprise valuedeclines?
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Part 1 The share price after the repurchase if its enterprisevalue goes up is $ ____ enter your response here. (Round to twodecimal places.)
Part 2 The share price after the repurchase if its enterprisevalue declines is $ ____ enter your response here. (Round totwo decimal places.)
AMC Corporation currently has an enterprise value (EV) of 340 million and 130 million in excess cash. The firm has 30 m
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