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Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million wort

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Answer #1

value of the enterprise = (amount planned to be spent on dividends and repurchases forever) / cost of capital

=> $9.4 million / 0.125

=>$75.2 milllion.

price per share = $75.2 million / 4.8 million shares

=>$15.67. per share.

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