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Harris Corporation is an all-equity firm with 100 million shares outstanding. Harris has $250 million in cash and expects future free cash flows of $85

Harris Corporation is an all-equity firm with 100 million shares outstanding. Harris has $250 million in cash and expects future free cash flows of $85 million per year. Management plans to use the cash to expand the firms operations, which will in turn increase future free cash flows by 15%. If the cost of capital of Harris investments is 12%, how would a decision to use the cash for a share repurchase rather than the expansion change the share price?

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