On December 31st, 2015, the company had 50M shares outstanding. In both 2015 & 2106, the company had an effective tax rate of 25.0% and an interest expense of $100. In 2016, the company repurchased $20M shares at $50.00 per share and did not sell any assets. On December 31st, 2016, the company traded at $50.00 per share. All data in the table below, including shares outstanding, is in USD millions. HINT: In your calculations, be careful when choosing to include cash, marketable securities, and the current portion of long term debt.

In 2016, assume the FCFF is $300 while the FCFE is $150. All cash flows (i.e. CFO, FCFF, & FCFE) will grow at 2.0% in perpetuity; the appropriate WACC is 8.0% and the cost of equity is 14.0%. How much would you pay for all of companys stock?

A. $1250M

B. $1275M

C. $1875M

D. $2500M

E. $2550M

Operoting Ihcome 14R 200 Cosh Marketoble Securities Accounts Poyable Accounts Receivable 14H Ner PPE ARI Dividends Shares Issued [Repurchased) 25 20