The stock of Theta is currently selling $($Po$)$ for

$$42\mathrm{.}65$

The expected EPS $($EPS$1)$is

$$5\mathrm{.}86$

The firm has a retention rate $($b$)$ of

$78\mathrm{.}00\%$

The ROE is

$18\mathrm{.}54\%$

The situation is expected to continue indefinitely.

Assume the current market price of the stock reflects its intrinsic value

as computed using the constant growth DDM$.$

What is the approximate PVGO?

Round to $2$ decimal places.

Step $1$: D$1=$ EPS$1*$ Payout

Step $2$: $g=$ROE$**b$

Step $3$: $K=D\frac{1}{P}o+g$

Step $4$: Known Po

Step $5$: Value of No Growth, EPS$1/$ K

Step $6$: PVGO