Visa pays a constant annual dividend of $1.29 per share forever. Assume that there is no capital gains tax, but a dividend tax of 15% for all investors. Visa's cost of equity is 10%.

Part 1 What is the stock price?

Part 2 What is the stock price if Visa announces that it will no longer pay dividends but will use the same amount of cash to repurchase its own shares instead.