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Jumbo Recordings plans to pay a $6 dividend this year and the earnings will grow 3% per year. The equity cost of capital is 10%.

Jumbo Recordings plans to pay a $6 dividend this year and the earnings will grow 3% per year. The equity cost of capital is 10%. Jumbo Recordings decides to pay a dividend of only $3 per share and use the remaining $3 to repurchase stock. The payout rate remains constant. What is the stock price?

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