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question 5

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 you own 2500 shares of Omicron stock and that Omicron uses the entire $50 million to repurchase shares.Suppose you are unhappy with Omicron's decision and would prefer that Omicron used the excess cash to pay a special dividend.The number of shares that you would have to sell in order to receive the same amount of cash as if Omicron paid the special dividend is closest to:

Definitions:

Parkinson's Disease

A progressive neurological disorder that affects movement, causing symptoms such as tremors, stiffness, and balance issues.

Phenylalanine

An essential amino acid required for the body's production of proteins and certain brain chemicals. It is obtained through diet.

GABA

Gamma-Aminobutyric Acid, an inhibitory neurotransmitter in the brain that helps control neural activity.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.