Laurel Enterprises expects earnings next year of $3.73 per share and has a 30% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment. If its earnings are expected to grow forever at a rate of 3% per year, what do you estimate the firm’s current stock price to be? (Hint: its next dividend is due in one year.)
The current stock price will be $___. (Round to the nearest cent.)