Panna Inc. expects to generate $4 per share in earnings for each of the operating periods, beginning at time 1. If the company makes no additional investments and returns all earnings as dividends to shareholders, this is the baseline scenario. However, Mr. Rossi, the President and CEO, has identified an opportunity to retain and invest 25% of the earnings starting three years from today (commencing at time 3). This investment opportunity will persist for each subsequent period indefinitely. He anticipates earning a 40% annual return from this new equity investment, with the return beginning one year after each investment is made. The firm's equity discount rate remains constant at 14% throughout.

The current stock price (at time 0) of Panna Inc. stock without pursuing the new investment =28.57

If the new investment, as described, is expected to be implemented, what would be the value of the stock per share at the present moment (time 0)?

28.57+(-1+0.4/0.14)/0.04/(1.14^3)= 59.9

Please explain this formula in bold.