Jumbo Transport

EPS: $2

Retain: 10%

Roi: 25%

Equity cost of cap: 11%

expected share price?

Jumbo Transport, an air-cargo company, expects to have earnings per share of $2.00 in the coming year. It decides to retain 10% of these earnings in order to lease new aircraft. The return on this investment will be 25%. If its equity cost of capital is 11%, what is the expected share price of Jumbo Transport