$2005$

Earnings per share $$1\mathrm{.}80$

Dividends per share $$0\mathrm{.}72$

Book value per share $-$ at end of the year $$8\mathrm{.}62$

Analysts' expected earnings for Alexas for next two years are:

Alexas Corporation reports the following:

$2006$: $$2\mathrm{.}00$

$2007$: $$2\mathrm{.}23$

Cost of equity is $15\%.$ Return on equity is expected to equal cost of equity from $2008$ onwards. Dividend payout ratio is expected to remain the same for $2006$ and $2007.$ Price per share at the end of $2005$ would be closest to: