Wilton Wayfarers plc is a chain of travel agents whose earnings have grown steadily at 12 per cent p.a. for several years and are expected to do so for the foreseeable future. Calculate the...

Wilton Wayfarers plc is a chain of travel agents whose earnings have grown steadily at 12 per cent p.a. for several years and are expected to do so for the foreseeable future. Calculate the equilibrium price for their shares if the three-month treasury bill rate is 6 per cent, the shares have a β-coefficient of 1.2 and the return on the FTSE-100 portfolio is currently 18 per cent.