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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,
- 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
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