Halliford Corporation expects to have earnings 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 wil retain 50% its earnings. wil then retain 20% of its earnings om at o nt onward Each year retained earnings wil be m ested in new projects with an expected retum of 25.00% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained eamings. If Halliford's equity cost of capital is 10.0%, what price would you estimate for Halliford stock?
The price per share is $ (Round to the nearest cent.)