As the manager of a large fund, you are actively looking for new investment opportunities. You have gathered the following information about a private company that looks promising. (a) The company's current earnings for the year are 136.5 pence per share, and the company has just paid out 20% of the earnings as cash dividend to shareholders. The investors require a minimum equity return of 14.6%. (i) Assume that the dividends on the stock are expected to increase by 3.75% per year into the indefinite future. Calculate the fair value of the company's shares using the dividend discount model.