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Tolo Co. plans the following repurchases: $ 10.1 million in one year, nothing in two years, and $ 20.9 million in three years. After that,
Tolo Co. plans the following repurchases: $ 10.1 million in one year, nothing in two years, and $ 20.9 million in three years. After that, it will stop repurchasing and will issue dividends totaling $ 24.4 million in four years. The total paid in dividends is expected to increase by 2.7 % per year thereafter. If Tolo has 1.6 million shares outstanding and an equity cost of capital of 10.9 %, what is its price per share today?
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