m Enterprises expects that one year from now it will pay a total dividend of  $4.5 million and repurchase $4.5 million worth of shares. It plans to spend $9.0 million on dividends and repurchases every year after that​ forever, although it may not always be an even split between dividends

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zoom Enterprises expects that one year from now it will pay a total dividend of  $4.5 million and repurchase $4.5 million worth of shares. It plans to spend $9.0 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 4.9 million shares​ outstanding, what is its share price​ today?

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