Halliford Corporation expects to have earnings this coming year of $ 3.18 per share. Halliford plans...

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Halliford Corporation expects to have earnings this coming yearof $ 3.18 per share. Halliford plans to retain all of its earningsfor the next two years. For the subsequent two? years, the firmwill retain 52 % of its earnings. It will then retain 17 % of itsearnings from that point onward. Each? year, retained earnings willbe invested in new projects with an expected return of 18.99 % peryear. Any earnings that are not retained will be paid out asdividends. Assume? Halliford's share count remains constant and allearnings growth comes from the investment of retained earnings. If?Halliford's equity cost of capital is 11.4 %?, what price would youestimate for Halliford? stock?

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Halliford Corporation expects to have earnings this coming yearof $ 3.18 per share. Halliford plans to retain all of its earningsfor the next two years. For the subsequent two? years, the firmwill retain 52 % of its earnings. It will then retain 17 % of itsearnings from that point onward. Each? year, retained earnings willbe invested in new projects with an expected return of 18.99 % peryear. Any earnings that are not retained will be paid out asdividends. Assume? Halliford's share count remains constant and allearnings growth comes from the investment of retained earnings. If?Halliford's equity cost of capital is 11.4 %?, what price would youestimate for Halliford? stock?