Tolo Co. plans the following repurchases: $9.9 million in one year, nothing in two years, and $19.1

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Tolo Co. plans the following repurchases: $9.9 million in one year, nothing in two years, and $19.1 million in three years. After that, it will stop repurchasing and will issue dividends totaling $25.9 million in four years. The total paid in dividends is expected to increase by 2.8% per year thereafter. If Tolo has 2.4 million shares outstanding and an equity cost of capital of 10.7%, what is its price per share today?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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