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,what is the price per share of the firm after paying a $3 per share dividend?
A) $18
B) $15
C) $13.67
D) $12
Correct Answer:
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