Question: Need help with this concept please help solve and explain. Thanks Tolo Co. plans the following repurchases: $10 million in one year, nothing in two
Need help with this concept please help solve and explain. Thanks
Tolo Co. plans the following repurchases: $10 million in one year, nothing in two years, and $20 million in three years. After that, it will stop repurchasing and will issue dividends totaling $25 million in four years. The total paid in dividends is expected to increase by 3% per year thereafter. If Tolo has 2 million shares outstanding and an equity cost of capital of 11%, what is its price per share today? The stock price will be $. (Round to the nearest cent.)
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