Problem $4-19$ Growth opportunities

Company Z$\text{'}$s eamings ahd dividends per share are expected to grow indefinitely by $5\%$ a year. Assume next year's dividend per share

is $$17.$ The cost of equity is $13\%$ if Company $Z$ were to distribute all of its eamings, it could maintain a level dividend stream of $$2$ a

share How much is the market actually paying per share for growth opportunitus?

Note: Do not round intermedate calculations. Round your answer to $2$ decimal places.