1. Nathan Industries (NTI) has 200 million shares outstanding. In 2020, NTI's net income will amount to $600 million. NTN has and will continue to payout 2/3 of total earnings to share holders: 31.29% as dividend and 68.71% to repurchase its shares. We also know that NTI's earnings will growth 5% a year, while its payout policy will remain unchanged over the years. If NTI's equity cost of capital is 10%, please estimate NTI's share price.

   		$40.00
   		$60.00
   		$80.00
   		$39.05