Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase

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Question:

$9.6

billion worth of shares over the year. (Actually, the exact amount was

$9,589,869,056known

as a "perfect" number because it is equal to the sum of its divisors). If the amount spent on share repurchases were expected to grow by

5.6%

per year, and Alphabet's equity cost of capital is

4.6%,

estimate Alphabet's market capitalization. If Alphabet has

930

million shares outstanding, what stock price does this correspond to?

What is the share price?

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Corporate Finance

ISBN: 9780134999463

5th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Posted Date: May 02, 2024 07:59 AM

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Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase

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To estimate Alphabets market capitalization we first need to calculate the amount it will s... View the full answer

Corporate Finance

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