Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alphabet ( GOOGL ) has yet to pay a dividend, but in spring 2 0 1 8 it announced it would repurchase $ 8 .

Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase $8.5 billion worth of shares over the
year. (Actually, the exact amount was $8,589,869,056 known as a "perfect" number because it is equal to the sum of its divisors). If the
amount spent on share repurchases were expected to grow by 7% per year, and Alphabet's equity cost of capital is 7.6%,
estimate Alphabet's market capitalization. If Alphabet has 686 million shares outstanding, what stock price does this correspond to?
The share price is $,.(Round to the nearest cent.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ImpactAssets Handbook For Investors

Authors: Jed Emerson

1st Edition

1783087293, 978-1783087297

More Books

Students also viewed these Finance questions

Question

1. How would you define "climate"?

Answered: 1 week ago

Question

5. Have you stressed the topics relevance to your audience?

Answered: 1 week ago