Use the Information for the Question(s)below

question 56

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.
-Omicron's enterprise value is closest to:

• A)$500 million.
• B)$900 million.
• C)$450 million.
• D)$400 million.

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Definitions:

Freudian Psychology

Freudian Psychology is a theory of the human psyche developed by Sigmund Freud, which posits that unconscious desires and motives shape individual behavior and personality.

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A type of consumer research that focuses on underlying psychological drivers of consumer behavior, including desires, needs, and motivations.

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The attribution of human characteristics or behavior to non-human entities, objects, or concepts.

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The belief that non-human entities, such as animals, plants, and inanimate objects, possess a spiritual essence.