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Halliford Corporation expects to have earningss this coming year of $3.00 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 50% of its arions It will then retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 25.00% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share Count remaine and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 10.0%, what price would you estimate for Halliford stock? Note: Remenber that growth rate is computed as: retention rate x rate of return. The price per share is $ (Round to the nearest cent.) The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage forn entered in decimal format a. What is the average annual return? The average return is 10.00 %. (Round to two decimal places.) b. What is the variance of the stock's returns? The variance of the returns is (Round to five decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 1 2 3 4 12.0% Return -4.0% 28.0% 4.0% + Print Done

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