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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 all-equity firm with 55 million shares outstanding. Iota has $220 million in cash and expects future free cash flows of $70 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 10%--> next year free cash flow would be $77 million. Iota's cost of capital is 8% and assumes that capital markets are perfect.
The value of Iota, if they use the $220 million to expand, is closest to ________.
A: $962.50 million
B: $770.00 million
C: $1925.00 million
D: $1155.00 million

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