Today is January 31, 2018. A firm has a book-value-per-share of $12.11.

You forecasted the following earnings-per-share and dividends-per-share for January 31, 2019 and January 31, 2020:

January 31, 2019

January 31, 2020

EPS

3.25

4.19

DPS

1.63

The long-run growth rate of EPS after January 31, 2020 is expected to be 3%. Furthermore, assume that dividend per share (DPS) is a constant 50% of EPS. Use a required return of 8%.

What is theper-shareequity value of the firm on January 31, 2018 usingEarnings Growth Analysismodel?

$22.41 per share

$31.28 per share

$40.30 per share

$51.22 per share