The JRN Corporation will pay a constant dividend of $$3$ per share, per year, in perpetuity. Assume that all investors pay a $20\%$ tax on dividends and that there is no capital gain tax. The cost of capital for investing in JRN stock is $12\%.$

$($a$)$ The price of a share of JRN$$s stock is closest to:

$$

$(1)$ $$20\mathrm{.}00$

$(2)$ $$24\mathrm{.}00$

$(3)$ $$25\mathrm{.}00$

$(4)$ $$18\mathrm{.}00$

$$

$$

$$

$($b$)$ Assume that management makes a surprise announcement that JRN will no longer pay dividends but will use the cash to repurchase stock instead. The price of a share of JRN$$s stock is now closest to:

$$

$(1)$ $$20\mathrm{.}00$

$(2)$ $$25\mathrm{.}00$

$(3)$ $$18\mathrm{.}00$

$(4)$ $$24\mathrm{.}00$

$$

$$

$$

$(1)$ $$4\mathrm{.}50$

$(2)$ $$5\mathrm{.}00$

$(3)$ $$4\mathrm{.}00$

$(4)$ $$9\mathrm{.}00$