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XYZ Technologies has $ 5 0 million in excess cash and no debt. The firm expectsto generate additional free cash flows of $ 4 0

XYZ Technologies has $50 million in excess cash and no debt. The firm expectsto generate additional free cash flows of $40 million per year in subsequent years and willpay out these future free cash flows as regular dividends. XYZ's unlevered cost of capitalis 10% and there are 10 million shares outstanding. XYZ's board is meeting to decidewhether to pay out its $50 million in excess cash as a special dividend or to use it torepurchase shares of the firm's stock.Assume that you own 2500 shares of XYZ stock and that XYZ uses the entire $50 millionto repurchase shares. Suppose you are unhappy with XYZ's decision and would prefer thatXYZ used the excess cash to pay a special dividend. Please calculate the number of sharesthat you would have to sell in order to receive the same amount of cash as if XYZ paid thespecial dividend.

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