Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Shatin Intl. has 9.5 million shares, an equity cost capical of 13% and is expected to pay a total divident of $19.1 million each year

Shatin Intl. has 9.5 million shares, an equity cost capical of 13% and is expected to pay a total divident of $19.1 million each year forever. It announces that it will increase its payout to shareholders. Instead of keeping its dividends it will keep it constant and will start repurchasing $10.1 million of stock each year. What is your estimate of Shatins stock price after this announcement? In the nearest cent.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Real Estate Financial Modelling

Authors: Roger Staiger

2nd Edition

1138046183, 978-1138046184

More Books

Students explore these related Finance questions