Use the Information for the Question(s)below

question 24

Essay

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 assumes that capital markets are perfect.
-What other (non-tax)factors should be considered when analysing shareholders' preferences to dividends over share repurchases?
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Definitions:

Retrieves

The process of getting back information or objects that were stored or kept away.

Alters

Alternate identities or personalities within an individual, often associated with dissociative identity disorder (DID), where a person's identity is fragmented into two or more distinct states.

Retention

The ability to hold, preserve, and recall information or experiences over time.

Period Of Time

A specific duration marked by a beginning and an end.