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