stelco steel plans to pay a dividend of $2.81 this year. the company has an expected earnings growth rate of 4.2% per year and an equity cost of capital of 9.6%.

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stelco steel plans to pay a dividend of $2.81 this year.
the company has an expected earnings growth rate of 4.2% per year and an equity cost of capital of 9.6%.
a) assuming stelco's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate stelco's share price.
b) suppose stelco decides to pay a dividend of $0.98 this year and use the remaining $1.83 per share to repurchase shares. if stelso's total payout rate remains constant, estimate stelco's share price.
c) if stelco maintains the dividend and total payout rate in (b), at what rate are stelco's dividends and earnings per share expected to grow?
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