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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 Omicron uses the entire $50 million to repurchase shares.The amount of the regular yearly dividends in the future is closest to:
Independent Variables
Factors in an experiment that are deliberately altered to test their impact on the variables being measured.
Manipulating Variables
The process of changing one or more variables in an experiment to observe the effects on other variables.
Double-Blind Procedure
A research method used to prevent bias, where neither the participants nor the experimenters know who is receiving a particular treatment.
Brand Effectiveness
Refers to the impact a brand has on its audience, including how well it achieves its marketing objectives and resonates with its target demographic.
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