i) Suppose earnings before tax per share or EBT/share is $1 and the dividend payout rate is 100%. The return on equity or Re is 10%. Suppose the corporate tax rate is 35% and there is no growth. The number of shares also remains constant, find the fundamental value of each share Po.

ii) now suppose the corporate tax rate cut to 21%.

Confused because I thought the eqn should be Po = D/r , and with this, tax has no effect. Not sure what to do.