Assignment:
Today is Jan 1. AgriCorn has300 million shares outstanding and they are trading at $6.44. Last week,AgriCorn Inc. paid out $50 million in dividends and repurchased $100million worth of shares. Analysts expect AgriCorn's payouts to grow at3% per annum in perpetuity. The next payouts will occur inapproximately one year. The dividends will be paid on Dec 29 and therepurchase will occur on Dec 31. How many shares will AgriCornrepurchase on Dec 31, assuming that it pays the fair price for thoseshares? Investors require a return of 11%.