Common stock value: Variable growth Home Place Hotels Inc. is entering into a 3-year remodeling and expansion project.

Common stock value: Variable growth 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 completed, it should allow the company

to enjoy much improved growth in earnings and dividends. Last year, the company

paid a dividend of $3.40. It expects zero growth in the next year. In years 2

and 3, 5% growth is expected, and in year 4, 15% growth. In year 5 and thereafter,

growth should be a constant 10% per year. What is the maximum price per share

that an investor who requires a return of 14% should pay for Home Place Hotels

common stock?