Question: Please answer this entire question clearly. Please ensure that your answer is correct. Thank you Shatin Intl. has 10 million shares, an equity cost of

Please answer this entire question clearly. Please ensure that your answer is correct. Thank you

Shatin Intl. has 10 million shares, an equity cost of capital 14%, and is expected to pay a total dividend of $18 million each year forever. It announces that it will increase its payout to shareholders. Instead of increasing its dividend, it will keep it constant and will start repurchasing $15 million of stock each year as well. How much will its stock price increase? The stock price will increase by $ (Round to the nearest cent.)

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