Halliford Corporation expects to have earnings this coming year of

$2.839

per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain

45%

of its earnings. It will retain

23%

of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of

22.6%

per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is

9.9%,

what price would you estimate for Halliford stock?

Question content area bottom

Part 1

The stock price will be

$enter your response here.

(Round to the nearest cent.)

sinh71 capital is 9.9%, what price would you estimate for Haliford stock? The stock price wil be 1 (Round to the nearest cert.) cacolal it 9.9%, what price would you estimale for tialliford atock? The stock grice wit be 5 (Round to the nearest cent.) Halliford Corporation expects to have earnings this corsing year of $2.839 per share. Halliford plans to retain all of its earnings tor the next two years. Then, for the subsequent two years, the firm will tetain 45% of its earnings, It will retain 23% of its earnings from that point orward. Each yoar, retained earnings will be invested in new projocts with an expected return of 22.8% per year. Any eamings that are not retained wil be paid out as dividends. Assume Hallsord's share count remains constant and all earnings growth comes from the investment of retained eamings. If Halifford's equity cost of capital is 9.9%, what price would you estimate for Hallitord stock? The stock price will be 5 (Round to the nearest cent) sinh71 capital is 9.9%, what price would you estimate for Haliford stock? The stock price wil be 1 (Round to the nearest cert.) cacolal it 9.9%, what price would you estimale for tialliford atock? The stock grice wit be 5 (Round to the nearest cent.) Halliford Corporation expects to have earnings this corsing year of $2.839 per share. Halliford plans to retain all of its earnings tor the next two years. Then, for the subsequent two years, the firm will tetain 45% of its earnings, It will retain 23% of its earnings from that point orward. Each yoar, retained earnings will be invested in new projocts with an expected return of 22.8% per year. Any eamings that are not retained wil be paid out as dividends. Assume Hallsord's share count remains constant and all earnings growth comes from the investment of retained eamings. If Halifford's equity cost of capital is 9.9%, what price would you estimate for Hallitord stock? The stock price will be 5 (Round to the nearest cent)