Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. image text in transcribed
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

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

Comparative Public Budgeting

Authors: George M Guess

2nd Edition

1316648109, 978-1316648100

More Books

Students also viewed these Finance questions