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Your firm has a project with Free Cash Flows (FCF) listed in the table below. The year 5 FCF consists of $25 million for year 5 and $75 million that represents the present value in year 5 of FCFs in years 6 through 10. After year 10, competition will drive incremental FCF to 0. Your discount rate is 10%.

Time 0 1 2 3 4 5

FCF ($MM) -50 5 10 15 20 100

Assume before this project that the firm has 10 million shares outstanding priced at $100/share. Assume when the firm announces this project, that the market accepts the firm's FCF and discount rate estimates. If the firm intends to issue new shares to finance the project, how many shares must the firm issue?

a. 452.3 thousand
b. 476.3 thousand
c. 500.3 thousand
d. 524.3 thousand

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