Omicron Technologies has $40 million in excess cash and no debt. The firm expects to generate additional free cash flows of $32 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Omicron's unlevered cost of capital is 11% and there are 8 million shares outstanding. Omicron's board is meeting to decide whether to pay out its $40 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock.

Assume that Omicron uses the entire $40 million to repurchase shares. The amount of the regular yearly dividends in the future is closest to:

a. $4.55

b. $9.10

c. $5.46

d. $3.64