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Please solve the following: Assume Coleco pays an annual dividend of $1.53 and has a share price of $37.51. It announces that its annual dividend
Please solve the following:
Assume Coleco pays an annual dividend of $1.53 and has a share price of $37.51. It announces that its annual dividend will increase to $1.72. If its dividend yield stays the same, what should be its new share price? The new price will be $ (Round to the nearest cent.) Suppose Compco Systems pays no dividends but spent $4.84 billion on share repurchases last year. If Compco's equity cost of capital is 12.4%, and if the amount spent on repurchases is expected to grow by 7.3% per year, estimate Compco's market capitalization. If Compco has 6.1 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
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