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AFW Industries has 219 million shares outstanding and expects earnings at the end of this year of $664 million. AFW plans to pay out 59%
AFW Industries has 219 million shares outstanding and expects earnings at the end of this year of $664 million. AFW plans to pay out 59% of its earnings in total, paying 33% as a dividend and using 21% to repurchase shares. If AFW's earnings are expected to grow by 7.3% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 12.2%. The price per share will be (Round to the nearest cent.) Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth of shares. It plans to spend $9.4 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 equity cost of capital is 12.3% and it has 5.4 million shares outstanding, what is its share price today? The price per share is (Round to the nearest cent.)
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