*3. Phobis Co is considering a bid for Danoca Co. Both companies are stock-market listed and are in the same business sector. Financial information on Danoca Co, which dividend, is as follows: is shortly to pay its annual Number of common stock 5 million common stock price $3.30 Earnings per share 40.00 Proposed payout ratio 60% Dividend per share one year ago 23.30 Dividend per share two years ago 22.0c Average sector price/earnings ratio 10 Using a cost of equity of 13% and a dividend growth rate of 4.5%,calculate the value of Danoca Co using the dividend growth model. A. $14.75m B. $5.00m C. $2.95m D. $16.50m