9) Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and repurchase $4.6 million worth of shares. It plans to spend $9.2 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 12.4% and it has 5.4 million shares outstanding, what is its share price today?

10) Maynard Steel plans to pay a dividend of $3.07 this year. The company has an expected earnings growth rate of 3.6% per year and an equity cost of capital of 10.5%.

a. Assuming that Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price.

b. Suppose Maynard decides to pay a dividend of $0.96 this year and use the remaining $2.11 per share to repurchase shares. If Maynard's total payout rate remains constant, estimate Maynard's share price.