(Topic: Risk Premiums and Discount Rates) Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $38. The stock will pay a dividend at year-end of $0.97. Assume that risk-free Treasury securities currently offer an interest rate of 1.3%. Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2017 (figures in percent per year) are as follows. Average Annual Portfolio Average Premium (Extra return versus Treasury bills) (%) Rate of Return (%) Treasury bills 3.8 Treasury bonds 5.3 1.5 Common stocks 11.5 7.7 What price should she be willing to pay for the stock today? (Hint: You should first determine the current discount rate on the stock) (Do not round intermediate calculations. Round your answer to 2 decimal places.)