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Alton Industries plans to distribute cash to its shareholders at the end of thi...

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Alton Industries plans to distribute cash to its

shareholders at the end of this year (12 months from now) by paying a

$6,2 dividend per share and spending an additional $2,6

per share on share

repurchases. The CFO anticipates that the firm’s earnings will grow by

3,5%

annually indefinitely. Assuming that ALTON’s equity cost of capital remains at

17,5%

and the payout policy stays the same, what is the company’s current stock

price? Write your answer to two decimal places.

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