What stock price does correspond to

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Suppose XYZ Corp pays no dividends but spent $3 billion on share repurchases last year. If the company's equity cost of capital is 8%, and if the amount spent on repurchases is expected to grow by 6.5% per year, estimate the company's market capitalization.

Problem 1: If the firm has 450 million shares outstanding, what stock price does this correspond to?

Reference no: EM132887637

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