Alphabet (GOOGL) has yet to pay a dividend, but in spring 2018 it announced it would repurchase billion worth of shares over the year. (Actually, the exact amount was known as a "perfect" number because it is equal to the sum of its divisors). If the amount spent on share repurchases were expected to grow by per year, and Alphabet's equity cost of capital is , estimate Alphabet's market capitalization. If Alphabet has million shares outstanding, what stock price does this correspond to?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.