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Lorico [155]
3 years ago
5

Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capita

l is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstandingA. $25.00
B. $12.50


C. $15.40


D. $20.00
Business
1 answer:
Andrej [43]3 years ago
4 0

This question is incomplete, the complete one was gotten from google.

Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstanding.

Taggart's stock price is closest to:

A. $25.00

B. $12.50  

C. $15.40

D. $20.00

Answer:

Taggart Transcontinental pays no dividends, but spent $4 billion on share repurchases last year. Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year. Taggart currently has 2 billion shares outstanding.

Taggart's stock price is closest to $25 - option A.

Explanation:

Market capitalization = 4/ (0.13 -0.05)

                                   = 4/0.08

Market capitalization = 50

Price per share = 50/2 = $25

Therefore, Taggart's stock price is closest to $25 - option A.

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3 years ago
The Containers Inc. experienced the following events during its first year of operations,
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Answer:

a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?

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3 0
3 years ago
Based upon acquiring equity or wealth, purchasing a car is to purchasing a home as leasing a car is toa. improving a house.b. re
abruzzese [7]

Answer:  

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Explanation:

A lease refers to a business agreement that allows for a resource to be used by the lessee (user) to compensate the lessor (owner). Land, houses, and automobiles are commonly leased assets. In addition, manufacturing or business machinery is rented.

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3 years ago
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Explanation:

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3 years ago
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Answer:

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FV= 54*1.10^119= 4,551,172.47

6 0
4 years ago
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