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 its 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 future.

$$ The firm has $11\mathrm{.}25$ 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 $$105$ million, which is invested in short$-$term investments, to its shareholders by buying back stock from its shareholders. Danielle also observed that, at this point, apart from the $$105$ million in short$-$term investments, the firm has no other nonoperating assets.