AFW Industries has

185

million shares outstanding and expects earnings at the end of this year of

$722

million. AFW plans to pay out

60%

of its earnings in total, paying

39%

as a dividend and using

21%

to repurchase shares. If AFW's earnings are expected to grow by

8.4%

per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of

12.6%.