Ch 15: Assignment - Distributions to Shareholders: Dividends and Repurchases Danielle is a financial analyst in Bidget Corp. As part of her analysis of the annual distribution policy and its impact on the firm's value, she makes the following calculations and observations: The company generated a free cash flow (FCF) of $45 million in as most recent fiscal year, The firm's cost of capital (WACC) is 14%. The firm has been growing at 8% for the past six years but is expected to grow at a constant rate of 7 in the ture The firm has 11.25 million shares outstanding The company has $120 million in debt and $75 million in preferred stock. Along with the rest of the finance team, Danielle has been part of board meetings and knows that the company is planning to distribute $10 milion, which invested in short-term investments, to its shareholders by buying back stock from its shareholders. Danielle also observed that at this point, apart from the $10 million in short-term investments, the firm has no other nonoperating assets. Using results from Danielle's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection est Value per share Value of the firm's operations Intrinsic value of equity immediately prior to stock repurchase Intrinsic stock price immediately prior to the stock repurchase Number of shares repurchased Intrinsic value of equity immediately after the stock repurchase Intrinsic stock price Immediately after the stock repurchase Based on your understanding of stock repurchases, Identify whether the following statement is true or false If a firm pays a dividend of 50.59 per share, the firm's stock price will also fall by $0.59 per share. MacBook Pro