I need help with the following questions.
Heather is a financial analyst in RTE Telecom inc. As part of the 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 $99 million in its most recent fiscal year. The firm's cost of capital (WACC) is 15%. The firm has been growing at 6% for the past six years but is expected to grow at a constant rate of 5% in the future. The firm has 24.75 million shares outstanding. The company has $264 million in preferred stock. A long with the rest of the finance team, Heather has been part of board meetings and knows that the company is planning to distribute $75 million, what Is invested in short-term Investments, to Its shareholders by buy ng back stock from its shareholders. Heather a so observed that, at this point, apart from the $75 million in short-term investment, the firm has no other nonoperating assets. Using results from Heather's calculation and observations, solve for the values in the following tables. Select the best answer provided in the section list. Based on your understanding of stock repurchases, Identify whether the following statement is true or false: if a firm pays a dividend of $0.59 per share, the firm's stock price will also fall by $0.59 per share. This statement is because if a firm pays a divided of $0.59 per share, the price per share of the firm's stock will also fall by $0.59 to any arbitrage opportunities. Heather is a financial analyst in RTE Telecom inc. As part of the 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 $99 million in its most recent fiscal year. The firm's cost of capital (WACC) is 15%. The firm has been growing at 6% for the past six years but is expected to grow at a constant rate of 5% in the future. The firm has 24.75 million shares outstanding. The company has $264 million in preferred stock. A long with the rest of the finance team, Heather has been part of board meetings and knows that the company is planning to distribute $75 million, what Is invested in short-term Investments, to Its shareholders by buy ng back stock from its shareholders. Heather a so observed that, at this point, apart from the $75 million in short-term investment, the firm has no other nonoperating assets. Using results from Heather's calculation and observations, solve for the values in the following tables. Select the best answer provided in the section list. Based on your understanding of stock repurchases, Identify whether the following statement is true or false: if a firm pays a dividend of $0.59 per share, the firm's stock price will also fall by $0.59 per share. This statement is because if a firm pays a divided of $0.59 per share, the price per share of the firm's stock will also fall by $0.59 to any arbitrage opportunities