7. (4 points) Rexton Oil is an all-equity firm with 100 million shares outstanding. Rexton...
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7. (4 points) Rexton Oil is an all-equity firm with 100 million shares outstanding. Rexton has $150 million in cash and expects perpetual future cash flows of $65 million per year. Management plans to use the cash to expand the firm's operations, which will in turn increase future free cash flows by 12%. The cost of capital is 10% If the company decides to repurchase shares what would be the share price after the repurchase? a)
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