Company XYZ is a public company. The XYZ stock just paid $2 cash dividend per share. Analysts forecast that the stocks dividends will grow at a high annual rate of 5% for the next two years before the growth rate drops to the long-term level 2% forever. The yield of Treasury bonds is currently 3% and the long-term return of S&P 500 is 8%. The beta of the XYZ stock is 1.4. The current price of the XYZ stock is per share.

XYZ stocks market value at the end of the second year should be _____ per share.

Group of answer choices

$22.491

$25

$27.563

$28.114