Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel

expects earnings next year of $$4\mathrm{.}38$ per share and has a $40\%$ retention rate, which it plans to keep

constant. Its equity cost of capital is $11\%,$ which is also its expected return on new investment; this is

expected to continue forever. What do you estimate the firm's current stock price to be$?($Hint: its next

dividend is due in one year.$)$

The current stock price will be $

$($Round to the nearest cent.$)$