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Vezuvo Technologies has $75 million in excess cash and no debt. The firm expects to generate additional free cash flows of $50 million per year in subsequent years and will pay out these future free cash flows as regular dividends. Vezuvo's unlevered cost of capital is 10% and there are 10 million shares outstanding. Vezuvo's board is meeting to decide whether to pay out its $75 million in excess cash as a special dividend or to use it to repurchase the firm's shares.
-Assume that you own 2 500 shares of Vezuvo stock and that Vezuvo uses the entire $75 million to repurchase shares. Suppose you are unhappy with Vezuvo's decision and would prefer that Vezuvo used the excess cash to pay a special dividend. The number of shares that you would have to sell in order to receive the same amount of cash as if Vezuvo paid the special dividend is closest to:
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