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Shatin Intl. has 10.1 million shares, an equity cost of capital of 13.1% and is expected to pay a total dividend of $20.9 million each

Shatin Intl. has

10.1

million shares, an equity cost of capital of

13.1%

and is expected to pay a total dividend of

$20.9

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

$10.5

million of stock each year as well. What is your estimate of Shatin's stock price after this announcement?

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