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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
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. Omicron's unlevered cost of capital is 10% and there are 10 million shares outstanding. 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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