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The hiNH Corpotation wili pay a constant dividend of $5.00 per share, per year, in perpetuity. Assume all investors pay a 15% tax on dividends

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The hiNH Corpotation wili pay a constant dividend of $5.00 per share, per year, in perpetuity. Assume all investors pay a 15% tax on dividends and that there is no capilal gains tax. Suppese the other investments with equivalent risk to HNH stock offer an after-tax refuen of 13% a. What is the price of a share of HNH slock? b. Assume that management makes a surprise announcement that HNH will no longer pay dividends but will use the cash to repurchase stock instead. What is the price of a share of HiNH slock now? a. What is the price of a share of HNH stock? The grice is: per share. (Round to the nearest cent.)

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