Row on the Left answers choices:

Value of the firm's operations answers: $5,400.00 million, $722.25 million, $54.00 million, $675.00 million

Second Drop down answers: $593 Million, $737 million, $683 million, $488 million

Third drop down answers: $36.15, $54.59, $43.93, $50.59

Row on the right answers choices:

Number of shares repurchased: 1.91 million, 2.39 million, 4.06 million, 3.11 million

Second drop down answers: $5,295.00 million, $488.00 million, $531.00 million, 570.00 million

third drop down answers: $50.59, $54.59, $43.93, $36.15

Blank answers choices:

first blank answers: "False" or "True"

second blank answers: "Will not be" or "Will be"

Remember that the primary goal of a firm is to maximize shareholder wealth by increasing the firm's intrinsic value. It is thus important to understand the impact of distributions-both in the form of dividends or stock repurchases-on the firm's value Consider the following situation: Charlize is a financial analyst in Demo You Inc. As part of her analysis of the annual distribution policy and its impact on the firm's value, she makes the following calculations and observations: . The company generated a free cash flow (FCF) of $54 million in its most recent fiscal year. The firm's cost of capital (WACC) is 15%. The firm has been growing at 8% for the past six years but is expected to grow at a constant rate of 7% in the future The firm has 13.50 million shares outstanding . The company has $144 million in debt and $90 million in preferred stock. Along with the rest of the finance team, Charlize has been part of board meetings and knows that the company is planning to distribute $105 million, which is invested in short-term investments, to its shareholders by buying back stock from its shareholders. Charlize also observed that at this point, apart from the $105 milion in short-term investments, the firm has no other nonoperating assets Using results from Charlize's calculations and observations, solve for the values in the following tables. Select the best answer provided in the selection list Value Value Value of the firm's operations Intrinsic value of equity immediately prior to stock repurchase Intrinsic stock price immediately prior to the stock repurchase Number of shares repurchased Intrinsic value of equity immediately after the stock repurchase Intrinsic stock price immediately after the stock repurchase Based on your understanding of stock repurchases, identify whether the following statement is true or false: The stock price of a firm increases after the firm repurchases some of its shares This statement is because if the stock price changes after a firm conducts its share repurchase, then there arbitrage opportunities. Thus, the price of the stock remains the same after a repurchase