Jessica is a financial analyst in Eades Logistics Corp. As part of her 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 $120 million in its most recent fiscal year. The firm's cost of capital (WACC) is 13%. The firm has been growing at 10% for the past six years but is expected to grow at a constant rate of 8% in the future. The firm has 30.00 million shares outstanding. The company has $320 million in debt and $200 million in preferred stock. Along with the rest of the finance team, Jessica has been part of board meetings and knows that the company is planning to distribute $120 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Jessica also observed that, at this point, apart from the $120 million in short-term investments, the firm has no other nonoperating assets. Using results from Jessica's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value Value of the firm's operations Intrinsic value of equity immediately prior to stock repurchase Intrinsic stock price immediately prior to the stock repurchase Number of shares repurchased Intrinsic value of equity immediately after the stock repurchase Intrinsic stock price immediately after the stock repurchase Jessica is a financial analyst in Eades Logistics Corp. As part of her 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 $120 million in its most recent fiscal year. The firm's cost of capital (WACC) is 13%. The firm has been growing at 10% for the past six years but is expected to grow at a constant rate of 8% in the future. The firm has 30.00 million shares outstanding. The company has $320 million in debt and $200 million in preferred stock. Along with the rest of the finance team, Jessica has been part of board meetings and knows that the company is planning to distribute $120 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Jessica also observed that, at this point, apart from the $120 million in short-term investments, the firm has no other nonoperating assets. Using results from Jessica's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list. Value Value Value of the firm's operations Intrinsic value of equity immediately prior to stock repurchase Intrinsic stock price immediately prior to the stock repurchase Number of shares repurchased Intrinsic value of equity immediately after the stock repurchase Intrinsic stock price immediately after the stock repurchase
