If zooms equity cost of capital is 125 and it has 54


Zoom Enterprises expects that one year from now it will pay a total dividend of $ 4.8 million and repurchase $ 4.8 million worth of shares. It plans to spend $ 9.6 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 12.5 % and it has 5.4 million shares outstanding, what is its share price today?

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Financial Management: If zooms equity cost of capital is 125 and it has 54
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