Look back one last time at Problem 19. How would you value Little Oil if it paid out $500,000 in… 1 answer below »
- May 25, 2021/ Finance
Oil if it paid out $500,000 in cash dividends year in and year out, with no expected growth or
decline? Remaining free cash flow will be used to repurchase shares. Assume that Little Oil’s
free cash flow continues to grow at 5% as in Problem 19.