Assume the following:

the investor's required rate of return is 15%,

• the expected level of earnings at the end of this year ( E 1) is $6
• the retention ratio is 40%,
• the return on equity (ROE) is 18% (that is, it can earn 18% on reinvested earnings), and
• similar shares sell at multiples of 6.818 times earnings per share.

T

he share price using the P/E valuation method is $_______

Round to the nearest cent