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Nicole is a financial analyst in Blanche Ine. As part of her analysis of the annual destribution policy and its impoct on the firm's velue,
Nicole is a financial analyst in Blanche Ine. As part of her analysis of the annual destribution policy and its impoct on the firm's velue, she makes the following calculations and observations: - The company generated a free cash flow (FCF) of $129 milion in its most recent fiscal year: - The firm's cost of capital (WACC) is 15%. The furm has been growing at 5% for the pase rix years but is expected to orow atua constant rate of 4% in. the future. - The firm has 32.25 miltion shares outstandang. - The company has $344 miltion in debt and $2.15 milion in preferred stock. Alone with the rest of the finance team, Nicole has been part of board mectings and knows that the compary is planning to distribute $60 milion, which is invested in short-term irvestments, to its shareholders by buying back stock from its shareholders, Nisole also observed that, at this poent, apart from the $60 mallion in short-rerm investmentw, the firm has no other nonoperating assets. Using tesults fromi Nicole's calculations and observations, tolve for the yalues in the following tablets, Sefect the best answer sicovided in the selection lest
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