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ABC company is an unlevered firm with excess cash of $60 million. The company has outstanding shares of 12 million and has a 10 percent

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ABC company is an unlevered firm with excess cash of $60 million. The company has outstanding shares of 12 million and has a 10 percent cost of capital. It is expected that the company would generate an annual stream of cash flows worth $48 in the following years. These cash flows are expected to be paid as regular dividends. The board of the company is deciding whether to use the current excess cash for share repurchase or as a special dividend The market value of the company is equal to: tion Select one $648.00 million $432.00 million O $1080.00 million O $540.00 million

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