Calculate the stock price if the company decides to use the


Rexton Oil is an all-equity firm with 1000 million of shares outstanding. Rexton currently has a cash flow of $450 Million of USDs and expects future free cash flows of $70 Millions per year. Management plans to use the cash to expand the firm's operations, which will in turn increase future cash free cash flows to $98 Millions per year. If the cost of capital of Rexton's investments is 10%, calculate the stock price if the company decides to use the cash for a share repurchase rather than the expansion.

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Financial Management: Calculate the stock price if the company decides to use the
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