ROUND A) AND B) TO THE NEAREST CENT. TIA

The HNH Corporation will pay a constant dividend of $2.00 per share, per year, in perpetuity. Assume all investors pay a 25% tax on dividends and that there is no capital gains tax. The cost of capital for investing in HNH stock is 10%. a. What is the price of a share of HNH stock? b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead. What is the price of a share of HNH stock now