FIN222 Ltd has 1,500,000 shares outstanding. It expects earnings at the end of the year of $5,000,000. FIN222 Ltd pays out 60% of its earnings in total 40% paid out as dividends and 20% used to repurchase shares. If FIN222 Ltds earnings are expected to grow by 7% per year forever, the payout rate to remain unchanged and cost of equity is 9%, what is FIN222 Ltds share price?

a.

$100

b.

$107

c.

$71.33

d.

$66.67