Valence Electronics Has 217 Million Shares Outstanding

question 10

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 Valences 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 Valences share price?

• A)$10.51
• B)$24.40
• C)$56.60
• D)$70.05
• E)$85.25

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Definitions:

Shape

In computer graphics and design, a geometric figure or outline, defined by boundaries such as edges or a closed loop, utilized in creating illustrations, diagrams, or patterns.

Gridlines

The lines on a graph or spreadsheet that form a grid to help align and measure data visually, aiding in data organization and analysis.

Snap

In a graphical user interface, a feature that automatically aligns objects or windows to a grid or to each other when moved close together.

Mirror Image

An identical reflection of an object, text, or image, often flipped on an axis to create a visual symmetry.