An Unlevered Firm Expects to Generate and Payout Free Cash

question 46

Multiple Choice

An unlevered firm expects to generate and payout free cash flows of $120,000 annually in the form of dividends and share repurchases starting next year.The discount rate is 13% and there are 125,000 shares outstanding.What is the current value per share?

• A) $7.38
• B) $0.96
• C) $1.08
• D) $6.87

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Definitions:

Gender Divide

The division or gap between males and females in various aspects such as opportunities, rights, and social roles, often highlighting inequalities.

Babcock and Laschever

Researchers known for their work on negotiation and women's challenges in achieving fair compensation.

Same-Sex Pairs

Groups or couples consisting of two individuals of the same sex, often used in research to study interactions without the influence of gender differences.

Low-Conflict

Situations characterized by minimal opposition or disagreement, often easier to manage or resolve.