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

question 30

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 stock price is closest to:

• A)$12.50.
• B)$15.40.
• C)$20.00.
• D)$25.00.

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Definitions:

Management Philosophy

The beliefs and values that guide the managerial practices and decision-making process within an organization.

Jim Sinegal

Co-founder and former CEO of Costco Wholesale Corporation, known for his leadership and innovative retail strategies.

Costco Wholesale

An American multinational corporation that operates a chain of membership-only warehouse clubs, known for selling bulk quantities of merchandise at discounted prices.

Consensus

General agreement among a group of people, typically reached after discussion and sometimes negotiation.