Singer will have an EBIT of $3,200,000$ at the end of the current year. The company EBITDA is expected to stay constant perpetually. The depreciation installment for the current year is $1,250,000,$ and after that the assets will be fully depreciated and there will not be any other capital expenditure. Debt is perpetual and its face value is $54,000,000.$ Net working capital at the beginning of the year is at $20,000,000$ and it is expected to stay at this level for the foreseeable future. The interest rate paid every year is $3\mathrm{.}50\%.$ Assuming that there are $2,000,000$ shares outstanding and that the tax rate is $25\%,$

a$)$ What is the expected dividend at the end of the current year if the free cashflow to equity holder is completely paid out via dividends? $[5$ Points$]$

b$)$ What is the expected dividends of the next two years $($that is$,$ the current and the subsequent years$)$ if the company pays out half of the free cash flow to equity holders via dividends and the other half via stock repurchase. Assume that dividends are paid after the stock repurchase and that the opportunity cost of capital for equity is $12\%.$