Use the Information for the Question(s)below

question 90

Multiple Choice

Use the information for the question(s) below.
Omicron Technologies has $50 million in excess cash and no debt.The firm expects to generate additional free cash flows of $40 million per year in subsequent years and will pay out these future free cash flows as regular dividends.Omicron's unlevered cost of capital is 10% and there are 10 million shares outstanding.Omicron's board is meeting to decide whether to pay out its $50 million in excess cash as a special dividend or to use it to repurchase shares of the firm's stock.
-Assume that Omicron uses the entire $50 million in excess cash to pay a special dividend.The amount of the special dividend is closest to:

• A)$5.00.
• B)$9.00.
• C)$4.00.
• D)$4.50.

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Definitions:

Postsociality

Concepts or conditions emerging in social theory and discourse that envision social life and interactions beyond traditional or current societal structures.

Performativity

Performativity is a concept focusing on the power of language and actions to effectively enact or bring into existence what they name or describe, often used in contexts of gender and identity.

Antiessentialism

A philosophical stance arguing against the idea that entities have a set of immutable attributes essential to their identity or function.

Semiotics of Materiality

The study of how material objects contribute to meaning-making processes in cultural and social contexts.