Including its cash, Omicron's total market value is closest to ________
Omicron Technologies has $60 million in excess cash and no debt. The firm expects to generate additional free cash flows of $48 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 10% and there are 12 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $60 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock.
A) $432.00 million
B) $648.00 million
C) $1080.00 million
D) $540.00 million
Answer: D
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Ford and its network of independent franchised dealers is an example of a ________
A) manufacturer-sponsored retailer franchise system B) manufacturer-sponsored wholesaler franchise system C) service-firm-sponsored retailer franchise system D) service-firm-sponsored equity strategic alliance E) manufacturer-and-service-sponsored joint venture
Due to the intangible nature of services and the need for standardization of image, business format franchising is more appropriate for service sponsor-retailer arrangements than product/trademark franchising
Indicate whether the statement is true or false