Protolo Executives is considering a cash purchase of Lobrudo shares. During the year just ended Lobrudo earned R8.50 per share and paid dividends of R5.10 per share. Lobrudos earnings and dividends are expected to grow at 15% per year for the next three years, after which they are expected to grow at 8% per year to infinity.

Source: Hunde, T. (2022)

Required

3.1 Calculate the maximum price per share that Protolo should pay for Lobrudo, if the investor has a required return of 12% on investments with risk characteristics similar to those of Lobrudo. (18 Marks)