Difference in the? firm share price

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Reference no: EM133072022

Collingwood Costumes is an? all-equity firm with 80 million shares outstanding. Collingwood has? $75 million in? cash, and expects future free cash flows of? $15 million per year. The cash can be used to expand the? firm's future? operations, increasing future free cash flows to? $16 million per year. If? Collingwood's cost of capital for the expansion is? 10%, what will be the difference in the? firm's share price compared to using the cash for a share? repurchase?

Reference no: EM133072022

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