PayPayPay is a listed company that distributes 100% of its earnings in the form of two dividends per year: one dividend of $1 per share paid at the end of each year, and a second dividend of $0.80 per share paid at the middle of each year. These dividends are constant and expected to be stable forever. The required return on equity capital is 6% p.a. with annual compounding.

Junet Juckson currently owns 4,000 shares of PayPayPay. Which of the following is closest to the fair value of his shares as of the start of 2021 (to the nearest dollar)?

Note: the future dividends are $0.80 per share in 0.5 years, $1 per share in 1 year, $0.80 per share in 1.5 years, $1 per share in 2 years, and so on forever.

Group of answer choices