Valence Electronics Has 217 Million Shares Outstanding

question 24

Multiple Choice

Valence Electronics has 217 million shares outstanding.It expects earnings at the end of the year of $760 million.Valence pays out 40% of its earnings in total 15% paid out as dividends and 25% used to repurchase shares.If Valence's earnings are expected to grow by 6% per year,these payout rates do not change,and Valence's equity cost of capital is 8%,what is Valence's share price?

• A)$10.51
• B)$24.40
• C)$56.60
• D)$70.05

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Definitions:

Sphenoidal

Sphenoidal refers to pertaining to or resembling the sphenoid bone, a butterfly-shaped bone at the base of the skull.

Cerebrum

The largest part of the brain, consisting of the right and left hemispheres, responsible for integrating sensory input, coordinating movement, and higher cognitive functions such as reasoning and emotion.

Lobe

Rounded, projecting part, such as the lobe of a lung, the liver, or a gland.

Association Fibers

Nerve fibers that connect different regions within the same hemisphere of the brain, facilitating communication between them.