Valence Electronics has 231 million shares outstanding. It expects earnings at the end of the year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Valence Electronics has 231 million shares outstanding. It expects earnings at the end of the year of $810 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 7% per year, these payout rates do not change, and Valence's equity cost of capital is 9%, what is Valence's share price? A. $21.04 OB. $10.52 OC. $70.13 D. $56.10 Valence Electronics has 231 million shares outstanding. It expects earnings at the end of the year of $810 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 7% per year, these payout rates do not change, and Valence's equity cost of capital is 9%, what is Valence's share price? A. $21.04 OB. $10.52 OC. $70.13 D. $56.10
Expert Answer:
Answer rating: 100% (QA)
Valence has 231 million shares outstanding currently Current earnings 810 million Valence pays out 4... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
tandard Normal Question 16, "6.1.36 Part 1 of 3 > The figure below shows a frequency and relative-frequency distribution for the heights of female students attending a college. Records show that the...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Rio Tinto is a listed company in the mining and metals production industry. Some information drawn from its 2020 annual report is shown below. Safety and health performance 2020 2019 2018 Fatalities...
-
An electronics store is selling car chargers for cell phones. The expense function is E = -300p + 13,000 and the revenue function is R = -32p2 + 1,200p. a. At what price would the maximum revenue be...
-
Leisurescape is planting a rectangular flower garden with a perimeter of 18 ft and a diagonal of 41 ft. Find the dimensions of the garden.
-
Control systems in not-for-profit organizations will never be as highly developed as in profit-seeking organizations. Do you agree? Explain.
-
In Problem 14.37, NO 2 transport by diffusion in a stagnant atmosphere was considered for steady-state conditions. However, the problem is actually time dependent, and a more realistic approach would...
-
cti 5.1: Int re: 4/20 5/20 ansv Question 10 You deposit $3,600 in
-
You are the senior acquisitions associate at a New York-based private equity fund with a core investment focus. You have reached an agreement to purchase a well-located, 185,000 square foot office...
-
Problem #8: Differentiate the following function. Problem #8: f(x) = 13x In(x1/6) 13/6*In(x)+13 13 Inx + 13 Enter your answer as a symbolic function of x, as in these examples Just Save Your work has...
-
How do the linear thermal expansion coefficients for steel, copper, and aluminum compare? Fundamentally, what are the differences occurring at the atomic level to cause this difference?
-
Suppose you want to observe the molecular gas in a galaxy with redshift z using the rotational transition of CO J=4-3. What frequency would you observe this transition at?
-
ANSWER WITHIN 30 MIN Cyral and Amira are cousins. Amira is a soware engineer and Cyral is in construcon management. They have shared a passion for geng involved in innovave projects. In 2021, Amira...
-
The Burj Khalifa in Dubai is currently the world's tallest building. If air at 40C is at an atmospheric pressure of 105 kPa at the ground floor (sea level, determine the absolute pressure at the top...
-
The United Kingdom is hitting the brakes on trade talks with Canada after Ottawa decided not to extendtemporary measures put in place after Brexit. London announced the pause in negotiations...
-
20. Kristin and Dan Peterson Kristin and Dan Peterson wonder how much they will need to save to fully fund four years of college for their daughter, Samantha, who is 12 years old today. She plans to...
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
Explain why market-to-book multiples demonstrate less variance over time and across firms than do price-earnings multiples.
-
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these...
-
Define earnings management. Discuss why it is difficult to discern whether a firm does in fact practice earnings management?
-
United Limited, a company that manufactures sporting equipment and accessories, owns a number of properties, which are listed below: 1. Trafford Lane: a freehold factory and office block used...
-
Helix Limited (Helix) purchased three identical properties (Right, Left and Up), and leased a fourth (Down), which has been classified as a right-of-use asset in accordance with IFRS 16 Leases,...
-
What are the principal accounting and disclosure differences between IAS 40 and FRS 102, Section 16?
Study smarter with the SolutionInn App