Omicrons board decides use this years 45 million in free


Omicron Technologies will generate free cash flows of $45 million per year, in perpetuity, and will pay out these free cash flows as regular dividends. Omicron has no debt. Omicron’s unlevered cost of capital is 10% and there are 10 million shares outstanding. Omicron's board decides use this year’s $45 million in free cash flows to repurchase shares of the firm's stock. The number of shares that Omicron will have outstanding following the repurchase is closest to: A) 8.8 million B) 1.2 million C) 9.0 million D) 8.9 million

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Omicrons board decides use this years 45 million in free
Reference No:- TGS02325311

Expected delivery within 24 Hours