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Laurel Enterprises expects earnings next year of $3.93 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost

Laurel Enterprises expects earnings next year of

$3.93

per share and has a

30%

retention rate, which it plans to keep constant. Its equity cost of capital is

9%,

which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of

2.7%

per year. If its next dividend is due in one year, what do you estimate the firm's current stock price to be?

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