q16

Canadian-based mining company El Dorado Gold (EGO) suspended its dividend in March 2016 as a result of declining gold prices and delays in obtaining permits for its mines in Greece. Suppose you expect EGO to resume paying annual dividends in two years time, with a dividend of $0.45 per share growing by 2.7% per year. If EGO's equity cost of capital is 9.7%, what is the value of a share of EGO today? The value of a share of EGO today is S(Round to the nearest cent.)