Shares of outstanding and an equity cost of capital

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Reference no: EM131060405

Tolo Co. plans the following repurchases: $9.8 million in one year, nothing in two years, and $20.7 million in three years. After that, it will stop repurchasing and will issue dividends totaling $24.1 million in four years. The total paid in dividends is expected to increase by 2.6% per year thereafter. If Tolo has 1.9 million shares of outstanding and an equity cost of capital of 11.4%, what is its price per share today?

Reference no: EM131060405

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