A venture capitalist is contemplating a $10 million investment in a company that expects to require no further capital through year seven. The company is expected to earn $8 million in year four and should be comparable to companies commanding price/earnings ratios (PERs) of about 10. The venture capitalist expects to harvest his investment at that point through the sale of his stock to an acquiring company. Assume further that the venture capitalist requires a 40% projected internal rate of return (IRR) on a project of this risk. Assume there are 0.8 million shares outstanding before the investment. What is the share price using these assumptions?