The Vinson Corporation of $$1,024,00$ with $4000,000$ shares outstanding. Its P$/$E ratio is $18$

The firm is holding $$480000$ of funds to invest or pay in dividends. If the funds are retained,$$ the aftertax return on investments will be $20$ percent, and this will add to present earnings.$$ The $20$ percent is the normal return anticipated$$ for the corporation, and the P$/$E ratio would remain unchanged. If the funds are paid out in the firm of dividends, the P$/$E ratio will increase by $10$ percent because the stockholders in this corporation have a preference for dividends over retained earnings.

a$.$ compute the price of stock under the two plans.