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Consolidated Pasta is currently expected to pay annual dividends of $10 a share In perpetuity on the 2.5 million shares that are outstanding. Shareholders require

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Consolidated Pasta is currently expected to pay annual dividends of $10 a share In perpetuity on the 2.5 million shares that are outstanding. Shareholders require a 10% rate of return from Consolidated stock. a. What Is the price of Consolidated stock? (Do not round intermediate calculations.} b. What is the total market value of its equity? {Enter your answer in millions.) _m Consolidated now decides to Increase next year: dividend to $20 a share, without changing Its investment or borrowing plans. Thereaer the company will revert to its policy of distributing $10 million a year. C. HOW much new equity capital Will the company need to raise to nance the extra dividend payment? [Enter your answer in millions.) m

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