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You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings next

You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings next year. In the subsequent year, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward. Retained earnings will be invested in projects with an expected return of 20% per year. If Beans equity cost of capital is 10%, at what price would you expect Beans stock to trade at today?

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