Use the Information for the Question(s)below

question 24

Essay

Use the information for the question(s)below.
Iota Industries is an all-equity firm with 50 million shares outstanding. Iota has $200 million in cash and expects future free cash flows of $75 million per year. Management plans to use the cash to expand the firm's operations, which in turn will increase future free cash flows by 12%. Iota's cost of capital is 10% and assumes that capital markets are perfect.
-What other (non-tax)factors should be considered when analysing shareholders' preferences to dividends over share repurchases?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Occipital Lobe

The region of the brain located at the back of the cerebral cortex, responsible for processing visual information.

"Sees Stars"

A colloquial term describing the visual sensation of seeing spots of light, often experienced after a sudden impact to the head or eye movement.

Brain

An organ of the central nervous system in vertebrates, housed in the skull, responsible for coordinating sensation, intellectual, and nervous activity.

Temporal

Temporal refers to anything related to time, whether it pertains to its measurement, its passage, or its characteristics within contexts.