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A no?growth firm has two million shares outstanding, no debt and pays out all earnings as dividends

Finance

A no?growth firm has two million shares outstanding, no debt and pays out all earnings as dividends.
Until now, it consistently earned $20 million per year on its assets. Its cost of capital is 10%.
a. Calculate its stock price share.
b. As a result of a change in financial policy, assume the company is now able to squeeze out 1%
annual growth by plowing back 5% of earnings. Calculate its new stock price per share

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