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Please help me answer question 11. Thank you Shatin Intl. has 10 million shares, an equity cost of capital 14%, and is expected to pay
Please help me answer question 11. Thank you
Shatin Intl. has 10 million shares, an equity cost of capital 14%, and is expected to pay a total dividend of $25 million each year forever. It announces that it will increase its payout to shareholders. Instead of increasing its dividend, it will keep it constant and will start repurchasing $10 million of stock each year as well. How much will its stock price increase? The stock price will increase by S (Round to the nearest cent.)Step by Step Solution
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