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Maynard Steel plans to pay a dividend of $3.17 this year. The company has an expected...

Maynard Steel plans to pay a dividend of $3.17 this year. The company has an expected earnings growth rate of 4.2% per year and an equity cost of capital of 9.3%.

a. Assuming​ Maynard's dividend payout rate and expected growth rate remain​ constant, and that the firm does not issue or repurchase​ shares, estimate​ Maynard's share price.

b. Suppose Maynard decides to pay a dividend of $1.01 this year and use the remaining $2.16 per share to repurchase shares. If​ Maynard's total payout rate remains​ constant, estimate​ Maynard's share price.

c. If Maynard maintains the dividend and total payout rate in ​(b​), at what rate are​ Maynard's dividends and earnings per share expected to​ grow?

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