Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 28, 2024

Your company has no debt and $180 in excess cash. You expect the company to generate $65 in Free Cash Flow per year in perpetuity,

Your company has no debt and $180 in excess cash. You expect the company to generate $65 in Free Cash Flow per year in perpetuity, the company has a WACC of 10% and 169 shares outstanding.

You are considering using the excess cash to repurchase shares, assuming a perfect capital market how many shares can the company repurchase?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Concepts And Practice Of Mathematical Finance

Authors: Mark S. Joshi

2nd Edition

0521514088, 9780521514088

More Books

Students also viewed these Finance questions

Question

★★★★★

The Community Bank in Saskatoon recently increased its fees to customers who use employees for teller services. Management is interested in whether its new fee policy has increased the number of...

Answered: 1 week ago

Question

★★★★★

Find parametric equations for the tangent line to the curve with the given parametric equations at the specified point. x = e t , y = te t , z = te t2 ; (1, 0, 0)

Answered: 1 week ago

Question

★★★★★

Using the Benign Breast Disease data set and the appropriate confidence interval formula, compute a 95% confidence interval for the mean weight of (a) the case group (???? = 50). (b) the control...

Answered: 1 week ago

Question

★★★★★

A cross-flow heat exchanger used in a cardio-pulmonary bypass procedure cools blood flowing at 5 liter/min from a body temperature of 37C to 25C in order to induce body hypothermia, which reduces...

Answered: 1 week ago

Question

★★★★★

Indicate whether each of the following actions would result in a change in net assets without donor restrictions or net assets with donor restrictions this year (select one or the other for each...

Answered: 1 week ago

Question

★★★★★

Reflect on the factors that influence you and identify some advantages and challenges you anticipate as an online learner. Think of a strategy to address each one that can increase your chances of...

Answered: 1 week ago

Question

★★★★★

At this stage of the PLC , the brand manager is likely to cut back on advertising a bit and increase sales promotions, though ultimately would, most likely, lower prices: introduction early growth...

Answered: 1 week ago

Question

★★★★★

Over the next seven years a well - to - do relative has promised to give you $ 2 , 2 5 0 every month. The first payment is received one - month from today. Assume the relevant interest rate is equal...

Answered: 1 week ago

Question

★★★★★

According to the announcement, from the Covid hearing in the European parliament, Pfizer stated that the vaccine had never been tested on stopping the transmission of the virus, this removes the...

Answered: 1 week ago

Question

★★★★★

Create a circuit that has 7 input bits IN0 to IN6, that drive one seven segment display in the order indicated below. Find out to which values the 7 input bits need to be set to get the decimal...

Answered: 1 week ago

Question

★★★★★

You know the following concerning a common stock: EPS$3.00 Payout ratio25% P/E10 Annual ROR6% of earnings and div 1) If you want to earn 10% percent, should you buy this stock? 2) What is the maximum...

Answered: 1 week ago

Question

★★★★★

1. Identify nonverbal behaviors that regulate turn taking within the team. Apply what youve learned in this chapter by analyzing the following case study, using the accompanying questions as a guide....

Answered: 1 week ago

Question

★★★★★

4. Attend a public hearing at your school or in the nearby community. It could be a meeting about zoning, placement of a public facility, etc. Observe nonverbal communication such as where public...

Answered: 1 week ago

Question

★★★★★

1. R. E. Axtell. (1998). Gestures: The dos and taboos of body language around the world. New York: John Wiley. This is a very readable book that provides fascinating examples of how different...

Answered: 1 week ago

Previous Question Next Question