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4. Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 million per

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4. Omicron Technologies has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows of $40 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 10 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. (4 points for each part on problem 4) A) Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend. Omicron's ex-dividend price should be about how much per share? B) Assume that Omicron uses the entire $50 million to repurchase shares. About how many shares should Omicron end up repurchasing? C) Assume that you own 4000 shares of Omicron stock and that Omicron uses the entire $50 million to repurchase shares. Suppose you are unhappy with Omicron's decision and would have preferred that Omicron used the excess cash to pay a special dividend. Detail exactly how you could create a homemade dividend that will provide you with the same combination of cash and stock that you would have received if Omicron paid the special dividend

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