Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shahn Inti has 10 million shares, an equity cost of capital 12%, and is expected to pay a total dividend of $22 million each year
Shahn Inti has 10 million shares, an equity cost of capital 12%, and is expected to pay a total dividend of $22 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 515 million of stock each year as well. How much will its stock price increase? The stock pnce will increase by $ (Round to the nearest cent)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started