19. ART Inc. has come out with a new and improved product. As a result, the firm projects an ROE of 25% a year until the end of year 3 and 15% a year afterwards, and it will maintain a plowback ratio of 20%. Its earnings in the coming year, i.e., E₁, will be $3 per share. Investors expect a 12% rate of return on the stock. What would be its PVGO (i.e., present value of growth opportunity)?

25

9.20

2.59

9.29