You expect that Bean Enterprises will have earnings per share of $2 for the coming year. Bean plans to retain all of its earnings for the next three years. For the subsequent two years, the firm plans on retaining 50% of its earnings. It will then retain only 25% of its earnings from that point forward. Retained earnings will be invested in projects with an expected return of 20% per year. If Bean's equity cost of capital is 10%, then the price of a share of Bean's stock is closest to .

$9.77

Explanation:

We need to calculate the Dividend payments first

First 3 years is 0 because company will retain all the earnings.

In fourth and  fifth years

Dividend = $2 x 50% = $1 per share per year

After fifth year

Dividend = $2 x ( 1 - 0.25) = $1.5

Cost of Capital = 10%

Now we need to determine the present value of each dividend payment.

PV  of first 3 years = $0

PV of 4th and 5th year dividend = $1 x (1+10%)^-4 + $1 x (1+10%)^-5 = $0.0.68 + $0.62 = $1.3

PV of dividend after 5th year = ($1.5 / 10%) x (1 + 10%)^-6 =  $8.47

Total Value = Sum of all present value = $1.3 + $8.47 = $9.77

15 pounds of apples and 6 cups of flour

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough