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Tarbox Tobacco Inc. is all equity financed and generates perpetual annual EBIT of $ 3 0 0 . Assume that the EBIT, and all other

Tarbox Tobacco Inc. is all equity financed and generates perpetual annual EBIT of $300. Assume that the EBIT, and all other cash flows, occur at year end and that we are currently at the beginning of a year. Assume that Tarbox has a 100% payout rate. Tarbox has 1,500 shares outstanding. The stock holders of Tarbox require a return of 5%. Assume that the tax rate is 0%. What is the price per share for Tarbox stock? (Round to the nearest whole number.)

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