Halliford Corporation expects to have earnings this coming yearof $ 2.84 per share. Halliford plans to retain all of its earningsfor the next two years.? Then, for the subsequent two? years, thefirm will retain 46 % of its earnings. It will retain 17 % of itsearnings from that point onward. Each? year, retained earnings willbe invested in new projects with an expected return of 20.62 % peryear. Any earnings that are not retained will be paid out asdividends. Assume? Halliford's share count remains constant and allearnings growth comes from the investment of retained earnings. If?Halliford's equity cost of capital is 8.1 %?, what price would youestimate for Halliford? stock?
NB: Kindly mention the excel formulae separately if solving onexcel.
