Suppose cisco system pays no dividends but spent 5 billion


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?

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Financial Management: Suppose cisco system pays no dividends but spent 5 billion
Reference No:- TGS01727571

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