Assume that WyoOne Corp. recently moved to its optimal capital structure by issuing $4,000mn additional debt and this move resulted in an increase of $2,500mn in firm value. There are 800mn shares outstanding and the current stock price is $17.5. WyoOne corp. intends to buy back shares with the proceeds from debt. Use this information to answer the following questions.
2) If WyoOne Corp. announces a share buyback program at $22.5 per share, how many shares (in millions) can the company buyback?
3) If WyoOne Corp. announces a share buyback program at $22.5, how many shares (in millions) will be remaining after the buyback?