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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:
Withholding Allowances
Exemptions claimed by an individual on a W-4 form to reduce the amount of income tax withheld from their paycheck.
Types Of Earnings
Types of earnings refer to the various measures of income a company generates, such as net income, operating income, and earnings before interest and taxes (EBIT).
Unearned Rent
Income received by a landlord for which the services (use of property) have not yet been provided.
Notes Payable
A financial obligation or loan documented by a written promissory note, specifying the terms of repayment.
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