Use the Information for the Question(s)below

question 95

Multiple Choice

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 assume that capital markets are perfect.
-The price per share of Iota if they decide not to use the $200 million to expand and hold the cash instead is closest to:

• A)$16.50.
• B)$16.80.
• C)$19.00.
• D)$13.75.

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Critical Life Events

Significant occurrences in an individual's life that have the potential to cause substantial changes or impacts.

Relational Transparency

The practice of being open, honest, and genuine in interactions with others, allowing for authentic relationships.

Authentic Leadership

A leadership style that is based on honesty, integrity, and transparency where leaders are true to themselves and committed to their values.

Internalized Moral Perspectives

An aspect of authentic leadership referring to the integration of ethical and moral standards into the leader's character and actions.