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Titan Industries Inc has 100 million shares outstanding and expects earnings at the end of this year of $800 million. Titan plans to pay out

  1. Titan Industries Inc has 100 million shares outstanding and expects earnings at the end of this year of $800 million. Titan plans to pay out 50% of its earnings in total, paying 25% as a dividend and using 25% to repurchase shares. If Titans earnings are expected to grow by 2% per year and these payout rates remain constant, determine Titans share price assuming an equity cost of capital of 12%.

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