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DFB , Inc. expects earnings per share of $ 5 next year and plans to pay out 6 0 % of those as dividends. DFB

DFB, Inc. expects earnings per share of $5 next year and plans to pay out 60% of those as dividends. DFB will reinvest its retained earnings in projects that have an expected return of 10% per year, Assume DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future. If DFB's equity cost of capital is 12%, what price would you estimate for DFB stock?

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