If hallifords equity cost of capital is 89 what price


Halliford Corporation expects to have earnings this coming year of $ 3.105 per share. Halliford plans to retain all of its earnings for the next two years.? Then, for the subsequent two? years, the firm will retain 51 % of its earnings. It will retain 22 % of its earnings from that point onward. Each? year, retained earnings will be invested in new projects with an expected return of 20.5 % 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 earnings. If? Halliford's equity cost of capital is 8.9 % what price would you estimate for Halliford? stock?

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Financial Management: If hallifords equity cost of capital is 89 what price
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