Saved Surf & Turf Hotels is a mature business, although it pays no cash dividends. Next year's earnings are forecasted at $72 million. There are 10 million outstanding shares. The company has traditionally paid out 50% of earnings by repurchases and reinvested the remaining earnings. With reinvestment, the company has generated steady growth averaging 5% per year . Assume the cost of equity is 15% o. Calculate Surf & Turf's current stock price, using the constant-growth DCF model (Hint Take the easy route and estimate overall market capitalization) (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current stock price b. Now Surf & Turf's CFO announces a switch from repurchases to a regular cash dividend. Next year's dividend will be $3.60 per share. The CFO reassures investors that the company will continue to pay out 50% of earnings and reinvest 50%. All future payouts will come as dividends however. What would be Surf & Turf's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Sudice