Newington Inc.'s most recent FCF was $150 million; ne. S most recent FCF was $150 million: the FCF is expected to grow at a constant rate of 070. The firm's WACC is 11%, and it has 40 million shares of common stock outstanding. The firm has mon in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other nonoperating assets. It has $550 million in debt and $100 million in preferred stock. 4. Immediately prior to the repurchase, what is the intrinsic stock price of Newington Inc.? a. $64.50 b. $64.75 c. $65.25 d. $65.75 e. $66.15 5. How many shares will Newington Inc. repurchase? (in millions) a. 1.22 b. 1.27 c. 1.32 d. 1.40 e. 1.50 6. Hartford Resources stock has increased significantly over the last five years, selling now for $175 per share. Management feels this price is too high for the average investor and wants to get the price down to a more typical level, which it thinks is $25 per share. What stock split would be required to get to this price, assuming the transaction has no effect on the total market value? Put another way, how many new shares should be given per one old share? a. 6.65 b. 6.98 c. 7.00 d. 7.35 e. 7.72