Shatin Intl. has

9.8

million shares, an equity cost of capital of

13.4%

and is expected to pay a total dividend of

$20.2

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

$10.4

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

ck price after this announcement?