An analyst estimates the EPS of Melda Company in the next four years to be

S5.4, 56.0, $6.5, and $7.2, respectively. Melda will keep the current payout ratio of 40% in

foreseeable years. The average trailing industry P/E in year 3 is expected to be 20.

Calculate the current value of Melda's stock if the cost of equity is 10%.