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Question 14 Not yet answered In the perfect world of Modigliani-Miller, all-equity firm Financial Calculators Inc. generates FCF of $1890.0 per year every year. In

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Question 14 Not yet answered In the perfect world of Modigliani-Miller, all-equity firm Financial Calculators Inc. generates FCF of $1890.0 per year every year. In the year that just ended, however, additional one-time expenses have reduced FCF to $1,500. There are 1,000 shares outstanding, and the cost of capital is 14.0%. Marked out of 6.00 Flag question Financial Calculators Inc. has two options before the board: Option1: Pay out $1,500 this year (t=0) and $1890.0 in the future. PART A: What is the market value of equity under Option 1? $ (Round to 2 decimal places.) Option 2: Repurchase shares this year instead and pay out $1890.0 in the future. PART B: What is the new number of shares after the repurchase? $ (Round to 2 decimal places.) PART C: What will be the new dividend at t=0? $ (Round to 2 decimal places.) PART D: What will be the dividend per share (DPS) at t=1 and afterwards? $ (Round to 3 decimal places.)

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