GenRon is considering how to pay out $20 million in excess cash to shareholders. The firm has no debt and expects to generate free cash flow of $48 million per year in perpetuity, starting next year. GenRons unlevered cost of capital is 12%, so its enterprise value is: =( )=($48 )/0.12=$400 With the cash, Genrons market value is $420 million. It has 10 million shares outstanding. GenRons board is considering 3 options for distributing the excess cash: Use the $20 million to pay a cash dividend. Repurchase shares instead of paying a dividend. Raise additional cash to pay a $48 million dividend. What is the expected effect of each policy?