Question: Halliford Corporation expects to have earnings this coming year of $3 179 por share Halliford plans to retain all of its carnings for the next
Halliford Corporation expects to have earnings this coming year of $3 179 por share Halliford plans to retain all of its carnings for the next two years. Then, for the subsequent two years, the firm will retain 50% of its earnings. It will retain 18% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 18.4% per year. Any earnings that are not retained will be paid out as dividends. Assume Halliford's share count remains constant and all earnings growth comes from the investment of retained earnings. If Halliford's equity cost of capital is 118%, what price would you estimato for Halliford stock The stock price will be (Round to the nearest cont)
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