Valence Electronics has

225

million shares outstanding. It expects earnings at the end of the year of

$710

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

5%

per year, these payout rates do not change, and Valence's equity cost of capital is

9%,

what is Valence's share price?

A.

$31.56

B.

$4.73

C.

$25.25

D. $9.47