Common stock valueVariable growth

Personal Finance ProblemHome 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 $2.60. It expects zero growth in the next year. In years 2 and 3,

6% growth is expected, and in year 4, 18% growth. In year 5 and thereafter, growth should be a constant 12% 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?