Question: Please do not forget to round how the directions specify. Suppose Compco Systems pays no dividends but spent $4.93 billion on share repurchases last year.
Please do not forget to round how the directions specify.
Suppose Compco Systems pays no dividends but spent $4.93 billion on share repurchases last year. If Compco's equity cost of capital is 12.9%, and if the amount spent on repurchases is expected to grow by 8.5% per year, estimate Compco's market capitalization. If Compco has 6.8 billion shares outstanding, to what stock price does this correspond? Compco's market capitalization will be $billion. (Round to two decimal places.) Compco's stock price will be s (Round to the nearest cent.)
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