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Iota Industries is an all - equity firm with 5 5 million shares outstanding. Iota has $ 2 2 0 million in cash and expects
Iota Industries is an allequity firm with million shares outstanding. Iota has $ million in cash and expects future free cash flows of $ million per year. Management plans to use the cash to expand the firm's operations, which in turn will increase future free cash flows by next year free cash flow would be $ million. Iota's cost of capital is and assumes that capital markets are perfect.
The value of Iota, if they use the $ million to expand, is closest to
A: $ million
B: $ million
C: $ million
D: $ million
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