Question
A company is considering a share buyback. It generates expected annual cash flows of $500 million in perpetuity and currently has 100 million shares outstanding.
A company is considering a share buyback. It generates expected annual cash flows of $500 million in perpetuity and currently has 100 million shares outstanding. The discount rate is 16% p.a. If the buyback is conducted at the current market price, how many shares will it buyback?
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Financial Management EMEA Theory And Practice
Authors: Michael Ehrhardt, Roland Fox, Eugene Brigham
2nd Edition
1473760216, 9781473760219
