We are now at the beginning of Year 1. At the end of Year 1 you expect that Harp Enterprises will have earnings per share of $1.50. The firm retains 60% of its earnings to invest in projects with an expected return of 15% per year, in perpetuity. Harps equity cost of capital is 12%. a) Estimate the earnings growth rate. b) Estimate the firms Year 2 earnings and the Year 2 dividend payment. c) What is the price of a share of Harps stock at the beginning of Year 1?