Use the Following Information to Answer the Question(s)below

question 21

Multiple Choice

Use the following information to answer the question(s) below.
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 market capitalization is closest to:

• A)$25 billion.
• B)$31 billion.
• C)$40 billion.
• D)$50 billion.

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Definitions:

Reliable

refers to the consistency and dependability of a measure or test over time, yielding similar results in repeated applications under the same conditions.

Separate Knowing

An approach to understanding or knowing that emphasizes critical examination and analysis of arguments.

Objectivity

The quality of being unbiased, fair, and not influenced by personal feelings or opinions in considering and representing facts.

Stand Apart

To distinguish oneself or something by exhibiting unique or superior qualities compared to others.