21. Payout and valuation (S15.2) Look back one last time at Problem 18. How would you value...

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21. Payout and valuation (S15.2) Look back one last time at Problem 18. 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 free cash flow will be used to repurchase shares. Assume that Little Oil’s free cash flow continues to grow at 5% as in Problem 18.

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