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Suppose Compco Systems pays no dividends but spent $5.03 billion on share repurchases last year. If Compco's equity cost of capital is 12.8%, and if

Suppose Compco Systems pays no dividends but spent

$5.03

billion on share repurchases last year. If Compco's equity cost of capital is

12.8%,

and if the amount spent on repurchases is expected to grow by

8.7%

per year, estimate Compco's market capitalization. If Compco has

6.7

billion shares outstanding, to what stock price does this correspond?

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