You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 30,000 shares outstanding. The most recent dividend was $2.6. The required rate of return for equity is 18.97%.

Book value of equity, per share, as at 31 December 2021 was $25.97. You have come up with the following forecasts:

- Earnings are expected to grow at 3.9% in perpetuity.

- The firm's Return on Equity is expected to remain constant at 23.46%.

What is the estimated value of the shares using a Residual Income Discount Model?

a. $33.71

b. $32.51

c. $31.68

d. $32.00