The HNH Corporation will pay a constant dividend of $$2\mathrm{.}75$ per share, per year, in perpetuity. Assume all investors pay a $15\%$ tax on dividends and that there is no capital gains tax. The cost of capital for investing in $HNH$ stock is $10\%.$

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?

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

The price of a share of HNH stock is $$,.($Round to the nearest cent$)$

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?

The price of a share of HNH stock is $$,($Round to the nearest cent.$)$