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Shatin Intl. has 10 million shares, an equity cost of capital 11%, and is expected to pay a total dividend of $18 million each year

Shatin Intl. has 10 million shares, an equity cost of capital 11%, and is expected to pay a total dividend of $18 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 $12 million of stock each year as well. How much will its stock price increase?

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