Surf \& Turf Hotels is a mature business, although it pays no cash dividends. Next year's earnings are forecast at $73 million. There are 10 million outstanding shares. The company has traditionally used 60% of earnings to repurchase shares of stock and has reinvested the remaining earnings. With reinvestment, the company has generated steady growth averaging 4% per year. Assume the cost of equity is 12%. a. Calculate Surf \& Turf's current stock price Note: Do not round intermediate calculations, Round your answer to 2 decimal places. b. Now Surf \& Turf's CFO announces a switch from repurchases to a regular cash dividend. Next year's dividend will be $4.40 per share. The CFO reassures investors that the company will continue to pay out 60% of earnings and reinvest 40% All future payouts will come as dividends, however. What would you expect to happen to Surf \& Turf's stock price? Ignore taxes