(Solution) - AFW Industries has 200 million shares outstanding and expects ea -(2025 Original AI-Free Solution)

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AFW Industries has 200 million shares outstanding and expects earnings at the end of this year of $700 million. AFW plans to pay out 60% of its earnings in total, paying 40% as a dividend and using 20% to repurchase shares. If AFW?s earnings are expected to grow by 8% per year and these payout rates remain constant, determine AFW?s share price assuming an equity cost of capital of 12%.