Laurel Enterprises pays annualdividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $4.27 per share and has a 40% retentionrate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on newinvestment; this is expected to continue forever. What do you estimate thefirm's current stock price tobe? (Hint: its next dividend is due in oneyear.)

The current stock price will be $