Valence Electronics Has 217 Million Shares on Issue

question 24

Multiple Choice

Valence Electronics has 217 million shares on issue. 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)$24.40
• B)$70.05
• C)$56.60
• D)$10.51

Determine the correct adjusting entries for prepaid expenses, supplies, and accrued revenues.

Identify how adjusting entries affect financial statement accounts and financial statements.

Differentiate between types of accounts such as assets, liabilities, revenues, and expenses in the context of adjusting entries.

Analyze the impact of adjusting entries on the balance of prepaid accounts prior to adjustment.