1. Compco's equity cost of capital is 12.6 %, and if the amount spent on repurchases is expected to grow by 8.7% per year, estimate Compco's market capitalization. If Compco has 6.1billion shares outstanding, to what stock price does this correspond?
2. How much should be invested today at 2.2% compounded semiannually to have $14,000 in 17 years?