P 7-26 (similar to) Question Help Suppose Compco Systems pays no dividends but spent $4.95...
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P 7-26 (similar to) Question Help Suppose Compco Systems pays no dividends but spent $4.95 billion on share repurchases last year. If Compco's equity cost of capital is 11.7%, and if the amount spent on repurchases is expected to grow by 8.9% per year, estimate Compco's market capitalization. If Compco has 6.8 billion shares outstanding, to what stock price does this correspond? Compco's market capitalization will be $ billion. (Round to two decimal places.)
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