Adventure Corporation has $50 million in excess cash and expects to generate additional free cash flows of $40 million per year in the subsequent years. The firm will pay out these future free cash flows as regular dividends. Adventure has 10 million shares outstanding, and its unlevered cost of capital is 8%. Adventures board is considering whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase the firm's stock.

Assume that Adventure uses the entire $50 million in excess cash to pay a special dividend. The amount of the regular annual dividends in the future is closest to ________.

$4.00

$4.80

$3.20

$8.00