Tarbox Tobacco Inc

Tarbox Tobacco Inc.is all equity financed and generates perpetual annual EBIT of $300.Assume that the EBIT,and all other cash flows,occur at year end and that we are currently at the beginning of a year.Assume that Tarbox has a 100% payout rate.Tarbox has 1,500 shares outstanding.The stock holders of Tarbox require a return of 5%.Assume that the tax rate is 0%.What is the price per share for Tarbox stock?

A) $6.67
B) $0.20
C) $4.00
D) $10.00
E) $7.49