Duncan has decided to purchase an ordinary share. He has predicted that the first dividend will be paid will be exactly two years from today, and amount to $5. From there, Duncan believes the dividend will grow at 20% p.a. for 3 years. After that, the share will grow at 2.5% p.a. indefinitely.

Based on the riskiness of this share, Duncan requires a return of 13% on his investment. Calculate the maximum price he is willing to pay for this share. (3 marks)