Stock price and market capitalization

Assignment Help Finance Basics

Reference no: EM1337344

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

Reference no: EM1337344

Questions Cloud

Regarding evolution of women rights : Summarize the evolution of women rights in marriage financial matters, employment, and reproduction.

Make a powerpoint presentation to convey information : Give two examples where it will be appropriate to create a PowerPoint presentation to convey information to a group of people working in the field of law.

Compare quantitative and qualitative measurement : Discuss and compare quantitative measurement with qualitative measurement.

Elucidate whether you would draw an aggregate demand : Elucidate whether you would draw an aggregate demand or aggregate supply diagram and predict what shift each situation would cause.

Stock price and market capitalization : Suppose Cisco Systems pays no dividends but spent 5 billion dollars on share repurchase last year. What stock price does this correspond to?

Explain about general business : Explain about General Business and How can a global firm use transfer pricing to increase its after-tax income

Hedging and hedgin risks : Illustrate out the term fuel hedging and what are the alternative techniques for hedging risk?

Provide an argument for or against trade : Provide an argument for or against trade. Explain your reasons. What should government do to support your argument.

Explain segments and niches : Explain Segments and Niches and What is the difference between a segment and a niche and How can a market be segmented

User Account

All Pages