Biologica is expected to have earnings per share of $4.35 next year. Its expected return on equity is 12% and its market capitalization rate (i.e., required return) is 11%. The firm has a long-standing policy of paying out 37.5% of its earnings as dividends. What is the present value of the growth opportunity of Biologica? $39.55 $29.66 $12.55 $7.05