The HNH Corporation will pay a constant dividend of $$2\mathrm{.}00$ per share, per year, in perpetuity. Assume all investors pay a $25\%$ tax on dividends and that there is no capital gains tax. The cost of capital for investing in $HNH$ stock is $12\%.$

a$.$ What is the price of a share of HNH stock?

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 $HNH$ stock now?