For the next 3years, Staples Inc. plans to distribute $5 millions in  dividends and $10 millions in share repurchases each year. After that, the company will stop paying dividends, and increase the amount spent on repurchases by 3% per year forever. For the company's equity cost of capital is 7% and to has 4million shares outstanding, what is the price per share today?

Answer rating: 100% (QA)

To calculate the price per share today we need to determine the present value of the dividends and s... View the full answer