Suppose that the firm's board is meeting to decide how to pay out $20 million in excess cash to shareholders.The company has no debt, and its unlevered cost of capital is 10%.With 10 million shares outstanding, the firm will be able to pay a $2 dividend immediately.The firm expects to generate future free cash flows of $48 million per year; thus, it anticipates paying a dividend of $4.80 per share each year thereafter.Assuming a perfect capital market, calculate the ex-dividend price of the company (Round to the nearest dollar).

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The total cash payout to shareholders will be 20 million The firm can pay an immediate dividend of 2 ... View the full answer