Question: Suppose Compco Systems pays no dividends but spent $ 5 . 1 3 billion on share repurchases last year. If Compco's equity cost of capital
Suppose Compco Systems pays no dividends but spent $ billion on share repurchases last year. If Compco's equity cost of capital is and if the amount spent on repurchases is expected to grow by per year, estimate Compco's market capitalisation. If Compco has billion shares outstanding, to what share price does this correspond?
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