A company's return on equity is 15% per year, and its payout ratio is 60% and its retention ratio is 40%. It expects to pay a $1.25 per share dividend next year. If the company's cost of equity is 12% per year, what is the present value per share of its growth opportunities (PVGO)? 1) $2.64 2) $3.96 3) $4.28 4) $2.14 5) $3.50