Phranque & Denial Co. earned $5 per share last year. Since the company is new, they decide to retain 100% of earnings for the next three years. After the third year, the company will payout 80% of its earnings per year, forever. If Phranque & Denial Co. expect to return 8% on new investments, and have an equity cost of capital of 7%, what is the estimated current share price of the company? Choose the closest answer. (4 marks) $87.78 d $77.40 $94.80 $71.66