Use the information for the$$ question$($s$)$ below.

Omicron Technologies has$$ $$50$ million in excess cash and no debt. The firm expects to generate additional free cash flows of$$ $$40$ million per year in subsequent years and will pay out these future free cash flows as regular dividends.$$ Omicron's unlevered cost of capital is$10\%$ and there are $10$ million shares outstanding.$$ Omicron's board is meeting to decide whether to pay out its$$ $$50$ million in excess cash as a special dividend or to use it to repurchase shares of the$$ firm's stock.

Assume that Omicron uses the entire$$ $$50$ million to repurchase shares. The number of shares that Omicron will repurchase is closest$$ to:

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Part $1$

A$.$

$1\mathrm{.}0$ million.

B$.$

$1\mathrm{.}1$ million.

C$.$

$1\mathrm{.}2$ million.

D$.$

$0\mathrm{.}9$ million.