Nisocom Industries is planning to distribute a dividend of $3 per share this year. It has an equity cost of capital of 10 percent. Moreover, its earnings are expected to grow at an annual rate of 4 percent.

Required:

1. a). What is the share price of Nisocom industries if it is assumed that the company has a constant expected growth rate and dividend payout rate and that it does not repurchase or issue shares? 

2. b). If we assume that it pays $1 as a dividend this year and utilize the remaining $2 per share for the share buyback, then what is the share price of the company keeping the total payout rate constant? 

3.