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Assignment questions/tasks: Q1 Use the information to the right to answer the questions below. a What is the firm's value of operations? b What is the firm's (total) value of equity? c What is the firm's stock price? Suppose the firm distributes all excess cash as a stock repurchase. d How many shares will be repurchased with the excess cash? e What is the new value of equity? f What is the new stock price? g Explain why your answers in e) and f) have changed/stayed the same SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW 66 Most recent FCFF, millions 10% WACC 2.5% Growth rate of FCFF, forever 13.2 Last period special dividend 150 Shares outstanding (millions) 0 Debt, millions 16 Excess cash, millions Assignment questions/tasks: Q1 Use the information to the right to answer the questions below. a What is the firm's value of operations? b What is the firm's (total) value of equity? c What is the firm's stock price? Suppose the firm distributes all excess cash as a stock repurchase. d How many shares will be repurchased with the excess cash? e What is the new value of equity? f What is the new stock price? g Explain why your answers in e) and f) have changed/stayed the same SHOW WORK HERE, HIGHLIGHT FINAL ANSWER IN YELLOW 66 Most recent FCFF, millions 10% WACC 2.5% Growth rate of FCFF, forever 13.2 Last period special dividend 150 Shares outstanding (millions) 0 Debt, millions 16 Excess cash, millions

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