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KMS corporation has assets of $300 million, $60 million of which are cash. It has debt of $75 million. Suppose that KMS decides to initiate

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KMS corporation has assets of $300 million, $60 million of which are cash. It has debt of $75 million. Suppose that KMS decides to initiate a dividend, but it wants the present value of payout to be $20 million. If its cost of equity capital is 12.6%, to what amount per year in perpetuity should it commit? KMS should commit to million per year. (Round to two decimal places.)

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