Look back one last time at Problem 17. How would you value Little Oil if it paid

Question:

Look back one last time at Problem 17. How would you value Little Oil if it paid out $500,000 in cash dividends year in and year out, with no expected growth or decline? Remaining will be used to repurchase shares. Assume that Little Oil's continues to grow at 5% as in Problem 17.
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...