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Yesterday, Cyberdyne Systems paid out $1.25 billion in dividends and repurchased $2.995 billion worth of shares. Assume that all payouts occur at the end of
Yesterday, Cyberdyne Systems paid out $1.25 billion in dividends and repurchased $2.995 billion worth of shares. Assume that all payouts occur at the end of the year. Next year's payouts (due in one year) are expected to be 3.5% bigger than last year's and are expected to grow at that same rate in perpetuity. Cyberdyne Systems has 0.95 billion shares outstanding and its shareholders require a 9% rate of return. What is the fair price for Cyberdynes's shares today? The fair price for Cyberdynes's shares today is $ (Round to two decimal places.)
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