Problem 7-02 Constant Growth Valuation

Boehm Incorporated is expected to pay a $3.60 per share dividend at the end of this year (i.e., D1 = $3.60). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 13%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent.

$