What is the price of Consolidated stock?

Note: Do not round intermediate calculations.

What is the total market value of its equity?

Note: Enter your answer in millions.

Consolidated now decides to increase next year's dividend to $20 a share, without changing its investment or borrowing plans. Thereafter the company will revert to its policy of distributing $10 million a year.

How much new equity capital will the company need to raise to finance the extra dividend payment?

Note: Enter your answer in millions.

What will be the total present value of dividends paid each year on the new shares that the company will need to issue?

Note: Enter your answer in millions.

What will be the transfer of value from the old shareholders to the new shareholders?

Note: Enter your answer in millions.

Is this figure more than, less than, or the same as the extra dividend that the old shareholders will receive?