Afw industries has 184 million shares outstanding and


AFW Industries has 184 million shares outstanding and expects earnings at the end of this year of $ 658 million. AFW plans to pay out 56 % of its earnings in total, paying 32 % as a dividend and using 24 % to repurchase shares. If AFW's earnings are expected to grow by 8.2 % per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.7 %.

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Financial Management: Afw industries has 184 million shares outstanding and
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