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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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