Halliford Corporation expects to have earnings this coming year of $ $2\mathrm{.}98$ per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two$$ years, the firm will retain $50\%$ of its earnings. It will then retain $18\%$ of its earnings from that point onward. Each$$ year, retained earnings will be invested in new projects with an expected return of $21\mathrm{.}81\%$ 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 $10\mathrm{.}6\%,$ what price would you estimate for Halliford$$ stock?

Note$$: Remenber that growth rate is computed$$ as: retention ratetimesrate of return.

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Part $1$

The price per share is $$$$?$