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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

  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

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