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Business, 08.08.2019 21:20 faithmccarroll3939

Shatin intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total dividend of $20 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 $10 million of stock each year as well. how much will its stock price increase?

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Shatin intl. has 10 million shares, an equity cost of capital of 13% and is expected to pay a total...
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