Northwest Territories Bikini Company has cash flows from operations of $150 million and needs $125 million for investment purposes.Assume the firm has 15 million shares outstanding and its shares are presently trading at $15 per share.If the M&M conditions hold, how many new shares must be issued if the firm plans to pay a $3 per share dividend?
A) 1.33 million shares
B) 1.46 million shares
C) 1.67 million shares
D) 3.00 million shares
Correct Answer:
Verified
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