1. Telford Corporation has a current share price of $24.99 and is expected to pay a dividend of $0.80 in one year. Its expected share price right after paying that dividend is $26.82.

a. What is Telford's equity cost of capital?

b. How much of Telford's equity cost of capital is expected to be satisfied by dividend yield and how much by capital gain?

2. Zoom Enterprises expects that one year from now it will pay a total dividend of $5.3 million and repurchase $5.3 million worth of shares. It plans to spend $10.6 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's cost of equity capital is 13.9% and it has 4.7 million sharesoutstanding, what is its share price today?

The price per share is $_____.

(Round to the nearest cent.)