Stock repurchases

Beta Industries has net income of $3,100,000, and it has 1,145,000 shares of common stock outstanding. The company's stock currently trades at $74 a share. Beta is considering a plan in which it will use available cash to repurchase 25% of its shares in the open market. The repurchase is expected to have no effect on net income or the company's P/E ratio. What will be its stock price following the stock repurchase? Round your answer to two decimal places.

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Quantitative Problem: Lane Industries is considering three independent projects, each of which requires a $2.8 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here:

Project H (high risk):	Cost of capital = 16%	IRR = 18%
Project M (medium risk):	Cost of capital = 9%	IRR = 7%
Project L (low risk):	Cost of capital = 6%	IRR = 7%

Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 40% debt and 60% common equity, and it expects to have net income of $4,000,000. If Lane establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to 2 decimal places. %