Shatin intl has 101 million shares an equity cost of


Shatin Intl. has 10.1 million? shares, an equity cost of capital of 12.8 % and is expected to pay a total dividend of $ 20.2 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 $ 10.4 million of stock each year as well. What is your estimate of? Shatin's stock price after this? announcement?

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Financial Management: Shatin intl has 101 million shares an equity cost of
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