Payout Policy \& Agency Costs XYZ is an all-equity firm with 10 million shares outstanding. XYZ has $50 million in cash and expects future free cash flows of $60 million per year every year. Management plans to use the cash to expand the firm's operations, which will in turn increase future free cash flows to $64 million per year. If the cost of capital of XYZ's investments is 10%, how would a decision to use the cash for a share repurchase rather than the expansion change the share price