System pays no dividends-estimate market capitalization

Assignment Help Financial Management

Reference no: EM131324921

Suppose Cisco System pays no dividends but spent $5 billion on share repurchases last year. If Cisco’s equity cost of capital is 12%, and if the amount spent on repurchases is expected to grow by 8% per year, estimate Cisco’s market capitalization. If Cisco has 6 billion shares outstanding, to what stock price does this correspond?

Reference no: EM131324921

Questions Cloud

Impaired assortment of chromosomes during meiosis : Generally, aneuploidies are caused by the impaired assortment of chromosomes during meiosis. For example, they are caused when the homologous chromosomes of pair 21 do not separate and, therefore, gametes with two chromosomes 21 and gametes withou..

Evaluate the level of impact of it enterprise architecture : Evaluate the level of impact of IT / enterprise architecture on information management (e.g., the flow of information throughout the company / organization, etc.) within a company or industry of your choice.

What can you learn from starbucks financial statements : What can you learn from Starbucks financial statements and performance about determining the overall health of companies?

Why did the cold war not turn into a world war iii : Why did the Cold War not turn into a World War III? Your initial response to the question should be between 300 - 400 words long. Include references and citations where necessary to ensure proper credit and documentation of your sources

System pays no dividends-estimate market capitalization : Suppose Cisco System pays no dividends but spent $5 billion on share repurchases last year. If Cisco’s equity cost of capital is 12%, and if the amount spent on repurchases is expected to grow by 8% per year, estimate Cisco’s market capitalization. I..

Describe the personal experience as an outsider : Describe the personal experience as an outsider might describe it.Describe how that experience was influenced by society structures .Finally review the four main perspectives and theorists related to those perspectives. What theory most applies to ..

Identify the relevant parts of the source : Provide a source evaluation.- Given is the source and the form that "must be" filled.- identify the relevant parts of the source and your outline.

Perform a porter''s five forces analysis : Perform a Porter's Five Forces analysis that explains why one type of business is potentially so profitable relative to the other.

Explain occurrence or breach or disaster that has happened : SEC 6010- A Risk Assessment is periodic assessment of the risk and magnitude of the harm. Discuss the occurrence or breach or disaster that has happened.

User Account

All Pages