Suppose a company in the E-commerce industry is expected to pay a dividend of $0.28 per share with a plowback ratio of 40% which is common for the industry. It is also known that, on average, 75% of the stock price for companies in this industry is paid by the investors for the present value of growth opportunities (PVGO). The estimated fair value per share for the company stock if the required return is 12% per annum is closest to

a.

$12.6

b.

$20.5

c.

$14.7

d.

$15.6