Japan Oil just reported that a major fire destroyed one of its oil production facilities in Miri,…

Japan Oil just reported that a major fire destroyed one of its oil production facilities in Miri, Sarawak. While the facility was fully insured, the loss of oil production will decrease Japan Oil’s free cash flow by RM120 million at the end of this year and by RM80 million at the end of next year. Japan Oil has 50 million shares outstanding and has a weighted average cost of capital of 9%. Assuming the value of Japan Oil’s debt is not affected by this event, the expected decrease in Japan Oil’s stock price isclosest to:

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