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

please help, it keeps saying im getting the wrong answer but im not sure what it really is. please help, it keeps saying im getting the wrong answer but im

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.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!