Use the Information for the Question(s)below

question 25

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.
-Including its cash,Omicron's total market value is closest to:

• A)$500 million.
• B)$900 million.
• C)$400 million.
• D)$450 million.

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Definitions:

Publicizing Trial Results

The act of disseminating the outcomes of a research study or clinical trial to the public or specific target audience.

Self-select

The act of choosing or selecting for oneself, often used in contexts where individuals pick out options that best suit their preferences or needs.

Interpretation of Causation

The process of understanding or explaining the reasons behind events or conditions, typically in the context of identifying why a particular disease or condition occurred.

Research Design

The overall strategy that a researcher employs to integrate the different components of the study in a coherent and logical way, ensuring the study addresses the research problem effectively.