Answer:
The closest answer is option (A) $4.45
Explanation:
Solution
Now
Let us assume that Omicron spends the entire $60 million to re-bought shares.
Thus
The amount of the regular yearly dividends in the future is nearest to:
Enterprise value =$48/0.10 = $480 million
So
The market value = Enterprise value + cash = $480 + $60 = $540 million
Share price = market value / shares outstanding = $540 million / 12 million = $45
Now
The number of shares re-bought = $60 million / $45 = 1,333,333 shares
Shares outstanding = 12,000,000 - 1,333,333 = 10,666,667
Dividend = $48 million free cash flow / 10,666,667 = $4.49
Therefore The amount of the regular yearly dividends in the future is closest to $4.45
