Valence electronics had 217 mil shares outstanding it, Ask an Expert

Finance

Valence Electronics had 217 mil shares outstanding. It expects earnings at the end of the year to be 760 mil. Valence pays out 40% of its earnings in total, 15% paid out as dividends and 25% to repurchase shares. I f valence's earnings are expected to grow by 6%, these payout rates don't change, and Valence's equity cost of capital is 8%, what is Valence's share price?
A)10.51
B)24.40
C)56.60
D)70.05

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91029961

Have any Question?Write your Review or question?

Related Questions in Basic Finance

One of your clients wants a trust over which he can

One of your clients wants a trust over which he can exercise exclusive control over disposition of his assets to his children from a former marriage. Which of the following trusts apply? (1) bypass trust (2) power of app ...

Industries recently commissioned management consultants to

Industries recently commissioned management consultants to estimate an appropriate rate for investment projects with the same risk as the firm. Unfortunately, part of the report was lost, and you have been asked to calcu ...

Suppose that todays stock price is 3236 if the required

Suppose that today's stock price is $32.36. If the required rate on equity is 21.7% and the growth rate is 9.1%, compute the expected dividend (i.e. compute D1) Note: Enter your answer rounded off to two decimal points. ...

Your company has an opportunity to invest in a project that

Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $16,000 the first year, $18,000 the second year, $21,000 the third year, $24,000 the fourth year, $28,000 the f ...

1 cornell enterprises is considering a project that has

1) Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 10. ...

Question - gamma energy is an oil producing company that

Question - Gamma Energy is an oil producing company that owns an oil field from which it can deliver 10 mln barrels of oil per year for the next four years. The current oil price is USD 75 per barrel. Extraction costs ar ...

Discuss hsbc ring-fencing strategy and the setting up of

Discuss HSBC ring-fencing strategy and the setting up of HSBC UK?

Please help me review for a test by helping me with this

Please help me review for a test by helping me with this problem. Please show work/formulas used so I can study how you got the answer. Argent Industries has sales of $2,200, total assets of $1,400, and a debt-equity rat ...

How does the lack of liquidity affect your execution

How does the lack of liquidity affect your execution strategy? Does this affect your use of limit orders and market orders? (Please attach any known literature if possible so i can refer to it. If not, its fine!)

Phillips owns 25 of mintor inc a private company in 2007

Phillips owns 25 % of Mintor, Inc. (a private company). In 2007, Mintor had sales of $22,00,000, had net income of $82,000 and Mintor paid $32,000 in dividends. If Phillips uses the Equity Income method, what did Phillip ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert