Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shatin Intl. has 1 0 million shares, an equity cost of capital of 1 3 % and is expected to pay a total dividend of
Shatin Intl. has million shares, an equity cost of capital of and is expected to pay a total dividend of $ 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 $ million of stock each year as well. What is your estimate of Shatin's stock price after this announcement?
The stock price will be $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