Question: Sammy Co. has a current cash flow (at time 0) of $5 m and pays no dividends. The present value of the companys future cash

Sammy Co. has a current cash flow (at time 0) of $5 m and pays no dividends. The present value of the companys future cash flows is $10 m. The firm is entirely financed with equity and has $500,000 shares outstanding. Assume the dividend tax rate is zero.

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