Shares outstanding and expects earnings at the end of year

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Reference no: EM131537349

AFW Industries has 180 million shares outstanding and expects earnings at the end of this year of $678 million. AFW plans to pay out 59% of its earnings in total, paying 38% as a dividend and using 21% to repurchase shares. If AFWs earnings are expected to grow by 7.5% per year and these payout rates remain constant, determine AFW's share price assuming an equity cost of capital of 11.1%. The price per share will be $ (Round to the nearest cent.)

Reference no: EM131537349

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