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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
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 540 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 board 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 Technology Corporation's enterprise value is closest to O a $900 million b. S450 milion S500 million Od $400 million Use the information for the question(s) below Technology Corporation has $50 million in excess cash and no debt. The firm expects to generate additional free cash flows af 540 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 board is meeting to decide whether to pay out its 550 million in excess aish as a special dividend or to use it to repurchase shares of the firm's stock. Inducing its cash, Technology Corporation's total market value is closest ten S900 million b. S500 million O 5400 million Od 5450 million 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 540 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 board 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 special dividend is closest tex O 59,00 Ob $4.50 OG 55.00 Od $4.00
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