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Business, 21.12.2019 00:31 dasdsadsafdhgifsdu

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 8% 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 in excess cash to pay a special dividend. the amount of the regular yearly dividends in the future is closest to

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