Omicron Technologies has $$50$ million in excess cash and no debt. The firm expects to generate additional free cash flows of $$40$ million per year in subsequent years and will pay out these future free cash flows as regular dividends. $$ Omicron's unlevered cost of capital is $11\%$ and there are $10$ million shares outstanding. $$ Omicron's board is meeting to decide whether to pay out its $$50$ million in excess cash as a special dividend or to use it to repurchase shares of the$$ firm's stock.

Assume that Omicron uses the entire $$50$ million in excess cash to pay a special dividend. $$ Omicron's cum$-$dividend price is closest$$ to:

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Part $1$

A$.$$ $50$

B$.$$ $83$

C$.$$ $41$

D$.$$ $33$