Sisters Corp's earnings next year is expected to be $3 per share and every year after that from existing projects. The firm has access to a new project with a return of 15% and it is going to invest 60% of its earnings every year in this new project and pays out the rest as dividends starting next year. If investors require a 10% rate of return to invest in this firm, what is the price per share of the company according to the constant growth model? a. $160

b. $120

c. $80

d. $60

The correct answer is $120 however I dont know the steps to solving.