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Omicron Technologies has 550 million in excess cash and no debt The firm expects to generate additionale con flow of 540 milion per year subsequent

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Omicron Technologies has 550 million in excess cash and no debt The firm expects to generate additionale con flow of 540 milion per year subsequent years and will pay out these future free cash flows as regular dividends Omicrons univered cost of capital is 10% and there are 10 milion shares outstanding Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as special dividend to use it to ropurchase shares of the firm's stock Assume that you own 2500 shares of Omicron stock and that Omicron uses the entire 550 miliony to pay a special dividend. Suppose you w unhappy with Omicron's decision and would prefer that Omicron used the excess cash to repurchase share you will not sell in case of a repurchase the number of shares that you would have to buy in order to undo the special cash dividend that Omicron paid in closest to O A 125 OB.275 o 250 OD.310

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