Maynard Steel plans to pay a dividend of $2.99 this year. The company has an expected earnings growth rate of 3.8 % per year and an equity cost of capital of 9.3%.
a. Assuming? Maynard's dividend payout rate and expected growth rate remain? constant, and Maynard does not issue or repurchase? shares, estimate? Maynard's share price.
The stock price is ? (Round to the nearest? cent.)
b. Suppose Maynard decides to pay a dividend of $0.92 this year and use the remaining $2.07 per share to repurchase shares. If? Maynard's total payout rate remains? constant, estimate? Maynard's share price.
The stock price is ? (Round to the nearest? cent.)
c. If Maynard maintains the dividend and total payout rate in ?(b?), at what rate are? Maynard's dividends and earnings per share expected to? grow?
The stock price is ? (Round to the nearest? cent.)