# Shatin Intl. has 9.79 million​ shares, an equity cost of capital of 13.2% and is expected to pay a total

###### Question:

Shatin Intl. has 9.79 million​ shares, an equity cost of capital of 13.2% and is expected to pay a total dividend of $19.7 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$10.3 million of stock each year as well. What is your estimate of​ Shatin's stock price after this​ announcement?

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