Question: please help, it keeps saying im getting the wrong answer but im not sure what it really is. Suppose Compco Systems pays no dividends but
Suppose Compco Systems pays no dividends but spent $5.17 billion on share repurchases last year. If Compco's equity cost of capital is 12.2%, and if the amount spent on repurchases is expected to grow by 8.5% per year, estimate Compco's market capitalization. If Compco has 6.9 billion shares outstanding to what stock price does this correspond? Compco's market capitalization will be $ billion. (Round to two decimal places.)
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