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Valence Electronics has 236 million shares outstanding. It expects earnings at the end of the year of $840 million. Valence pays out 40% of its
Valence Electronics has 236 million shares outstanding. It expects earnings at the end of the year of $840 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. $56.95 B. $71.19 C. $21.36 D. $10.68
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