Common stock value-Variable growth, Personal Finance Problem, Home Place? Hotels, Inc., is entering into a? 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that? time, but when it is? complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last? year, the company paid a dividend of ?$1.50. It expects zero growth in the next year. In years 2 and? 3, 3?% growth is? expected, and in year? 4, 19?% growth. In year 5 and? thereafter, growth should be a constant 11?% per year. What is the maximum price per share that an investor who requires a return of 15?% should pay for Home Place Hotels common? stock?
The maximum price per share that an investor who requires a return of 15?% should pay for Home Place Hotels common stock is ?$_____