Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 4% and the market risk premium is 8%.
Van Buren currently expects to pay a year-end dividend of $2.85 a share (D1 = $2.85). Van Buren's dividend is expected to grow at a constant rate of 4% a year, and its beta is 0.6. What is the current price of Van Buren's stock? Round your answer to the nearest cent.