Emma is a financial analyst in Demo You Inc. 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 $69 million in its most recent fiscal year. The firm's cost of capital (WACC) is 12%. 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 17.25 million shares outstanding. The company has $184 million in debt and $115 million in preferred stock. Along with the rest of the finance team, Emma 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. Emma also observed that, at this point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. Using results from Emma's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value Value of the firm's operations Intrinsic value of equity immediately prior to stock repurchase Intrinsic stock price immediately prior to the stock repurchase $11,040.00 million $110.40 million $1,380.00 million $1,476.60 million 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: Emma is a financial analyst in Demo You Inc. 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 $69 million in its most recent fiscal year. The firm's cost of capital (WACC) is 12%. 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 17.25 million shares outstanding. The company has $184 million in debt and $115 million in preferred stock. Along with the rest of the finance team, Emma 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. Emma also observed that, at this point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. Using results from Emma's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value 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 $74.38 $74.38 $81.04 $85.04 $68.29 Based on your understanding of stock repurchases, identify whether the following statement is true or false: Emma is a financial analyst in Demo You Inc. 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 $69 million in its most recent fiscal year. The firm's cost of capital (WACC) is 12%. 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 17.25 million shares outstanding. The company has $184 million in debt and $115 million in preferred stock. Along with the rest of the finance team, Emma 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. Emma also observed that, this point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. Using results from Emma's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value 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 1.41 million 2.40 million 1.13 million 1.83 million $74.38 Based on your understanding of stock repurchases, identify whether the following statement is true or false: mma is a financial analyst in Demo You Inc. As part of her analysis of the annual distribution policy and its impact on the firm's value, she akes the following calculations and observations: The company generated a free cash flow (FCF) of $69 million in its most recent fiscal year. The firm's cost of capital (WACC) is 12%. 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 17.25 million shares outstanding. The company has $184 million in debt and $115 million in preferred stock. long with the rest of the finance team, Emma has been part of board meetings and knows that the company is planning to distribute $105 illion, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Emma also observed that, is point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. sing results from Emma's calculations and observations, solve for the values in the following tables. Select the best answer provided in the election list. Value Value 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 $74.38 $10,935.00 million $1,178.00 million $1,196.00 million $1,275.00 million ased on your understanding of stock repurchases, identify whether the following statement is true or false: Emma is a financial analyst in Demo You Inc. 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 $69 million in its most recent fiscal year. The firm's cost of capital (WACC) is 12%. 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 17.25 million shares outstanding. The company has $184 million in debt and $115 million in preferred stock. Along with the rest of the finance team, Emma 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. Emma also observed that, this point, apart from the $105 million in short-term investments, the firm has no other nonoperating assets. Using results from Emma's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value 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 $74.38 $68.29 $81.04 $85.04 $74.38 Based on your understanding of stock repurchases, identify whether the following statement is true or false: The value of operations depends on whether a firm decides to make distributions in the form of dividends or stock repurchases. This statement is firm distributes it because ignoring possible tax effects and signals, the value of a firm's operations earnings. depend on how the True False depend on how the This statement is because ignoring possible tax effects and signals, the value of a firm's operations firm distributes its residual earnings. does does not