Ch. 7 - Non-constant Retention Stock Pricing Example WC View Co. have projected their next earnings at $3/ share. The company plans on retaining all of those earnings to invest in new projects which have a 20% expected return. Going forward WC View plans to gradually reduce its retention rate by retaining 60% and 40% of its earnings in the following two years. After that retention is expected to remain stable at 20%. All earnings that are not retained are paid out as dividends. If shareholders require 18% return, what is the price of WC View's stock today