Question: Suppose Compco Systems pays no dividends but spent $ 4 . 9 3 billion on share repurchases last year. If Compco's equity cost of capital

Suppose Compco Systems pays no dividends but spent $ 4.93 billion on share repurchases last year. If Compco's equity cost of capital is 11.7%, and if the amount spent on repurchases is expected to grow by 7.1% per year, estimate Compco's market capitalisation. If Compco has 5.2 billion shares outstanding, to what share price does this correspond?
Question content area bottom
Part 1
Compco's market capitalisation will be $
enter your response here billion.(Round to two decimal places.)
Part 2
Compco's share price will be $
enter your response here. (Round to the nearest cent.)

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!