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Part $1$

Common stock valuelong dashVariable growth$$Personal Finance Problem$$Home Place$$ Hotels, Inc., is entering into a$3-$year remodeling and expansion project. The construction will have a limiting effect on earnings during that$$ time, but when it is$$ complete, it should allow the company to enjoy much improved growth in earnings and dividends. Last$$ year, the company paid a dividend of $$$$1\mathrm{.}90.$ It expects zero growth in the next year. In years $2$ and$3,6\%$ growth is$$ expected, and in year$4,16\%$ growth. In year $5$ and$$ thereafter, growth should be a constant $12\%$ per year. What is the maximum price per share that an investor who requires a return of $16\%$ should pay for Home Place Hotels common$$ stock?

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Part $1$

The maximum price per share that an investor who requires a return of $16\%$ should pay for Home Place Hotels common stock is $$$

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enter your response here. $($Round to the nearest$$ cent.