25. currently work in a private equity firm, and are trying to decide whether to buy a startup company focused on designing long-lasting laptop batteries. The companys dividend over the last twelve months was $13 million dollars. You believe the dividend will grow at 3% per year in perpetuity. Furthermore, you think this companys market beta is 1.2 (based on analyzing other comparable companies with publicly traded stock) and the market risk-premium (i.e. []) is 6% per year. The current risk-free rate is 2%. Using the CAPM to calculate the cost of capital for this startup, of the amounts given below, what is the most you would be willing to pay to purchase this company? (Select the answer closest to your valuation for the company.)
26. $180 million
27. $204 million
28. $215 million
29. $222 million