Market capitalization-what stock price does this correspond

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Reference no: EM131051137

Suppose Cisco Systems pays no dividends but spent $5.08 billion on share repurchases last year. If Cisco’s equity cost of capital is 12.8%, and if the amount spent on repurchases is expected to grow by 8.9% per year, estimate Cisco’s market capitalization. If Cisco has 6.4 billion shares outstanding, to what stock price does this correspond?

Reference no: EM131051137

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