Question: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth of shares. It

 Zoom Enterprises expects that one year from now it will pay

Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth of shares. It plans to spend $9.4 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 13.5% and it has 5.4 million shares outstanding, what is its share price today? The price per share is $ . (Round to the nearest cent.) AFW Industries has 197 million shares outstanding and expects earnings at the end of this year of $747 million. AFW plans to pay out 61% of its earnings in total, paying 33% as a dividend and using 28% to repurchase shares. If AFW's earnings are expected to grow by 7.9% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.5%. The price per share will und to the nearest cent.)

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