Score: 0 of 1 pt 9 of 26 (19 complete) HW Score: 61 22%, 15.92 of 26 pts P 17-9 (similar to) Question Help The HNH Corporation will pay a constant dividend of $125 per share, per year, in perpetuty Assume all investors pay a 20% tax on dividends and that there is no capital gains tax The cost of capital for investing in HNH stock is 14% 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? a. What is the price of a share of HNH Stock? The price of a share of HNH stock is $ (Round to the nearest cent) Score: 0 of 1 pt 13 of 26 (19 complete) P 17-13 (similar to) HW Score: 61 22%, 15.92 of 26 pts Question Help You manage a (tax.free) pension fund that is invested in KOA Corporation KOA's managers have just announced that they unexpectedly generated an extra $55 million in cash flow this year. They are considering paying it out now as a special dividend or investing it in one year Treasury securities that will earn 10% interest over the next year. They would then distribute the $55 million plus interest earned as a special dividend. I KOA pays a 21% corporate tax rate, would you prefer they pay the $55 million as a special dividend now or wait a year? IF KOA pays the special dividend immediately, you can then choose to invest in the same one year Treasury securities and earn million (Round to two decimal places)