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AFW Industries has 181 million shares outstanding and expects earnings at the end of this year of $741 million. AFW plans to pay out 65%
AFW Industries has 181 million shares outstanding and expects earnings at the end of this year of $741 million. AFW plans to pay out 65% of its earnings in total, paying 30% as a dividend and using 35% to repurchase shares. If AFW's earnings are expected to grow by 7.2% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 12.2%.
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