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Your firm has beta of 2.0 and a free cash flow today of $10M. The firm is expected to produce a perpetual free cash flow

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Your firm has beta of 2.0 and a free cash flow today of $10M. The firm is expected to produce a perpetual free cash flow of $12M per year starting next year, that grow at rate of I percent per year. Assume a risk free rate of 3.0 percent and an expected market risk premium of 6.0 percent. Your firm has 7M shares outstanding. If your firm repurchases $25M worth of shares, how many shares will your firm repurchase? O 2,500,000 2,312,673 O 1,828,822

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