• This is a successful tech company. You have estimated the C of E to be 11% and expect share buybacks and dividends to grow 8%/year, and you believe the company could be sold for $2.4 billion at the end of Year 4
  • Fill in Years 2 and 3 of the timeline below and calculate the companys current market cap and share price given 100 million shares outstanding

Timeline ($ in Millions)

Year 0 1 2 3 4

Dividends 45

Buybacks 55

Div+Buybacks 100

Mkt Cap 2,400