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Use the information for the question(s) below. Technology Corporation has 550 million in excess cash and no debt. The firm expects to generate additional free

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Use the information for the question(s) below. Technology Corporation has 550 million in excess cash and no debt. The firm expects to generate additional free cash flows af $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Technology Corporation unlevered cost of capital is 10% and there are 10 million shares outstanding. Technology Corporation's boxard is meeting to decide whether to pay out its 550 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock. Assume that Technology Corporation uses the entire 550 million in excess cash to pay a special dividend. The amount of the regular yearly dividends in the future is dosest to O a $4.00 ob $9.00 OG 55.00 Od $4.50 A Sport Store is preparing to pay its quarterly dividend af 52.20 a share this quarter. The stock deed at $67.70 a share today. What will the ex-dividend stock price be if the relevant tax rate is 15 percent and all else is held constant? O a S55.94 Ob $55.63 OC. $55.50 Od $55.26

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