Halliford Corporation expects to have earnings this coming year of $2.81 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will...

Extracted text: Halliford Corporation expects to have earnings this coming year of $2.81 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 52% of its eamings. It will then retain 21% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected retum of 20.73% periyear. 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 investmient of retained earnings. If Halliford's equity cost of capital is 8.1%. what price would you estimate for Halliford stock? Note: Remenber that growth rate is computed as: retention rate x rate of retum. The price per share is S. (Round to the nearest cent.)