Question: You are deciding whether to add Pony Electronics to your portfolio, but you are concerned about your projection for their growth rate. Pony's cost of

You are deciding whether to add Pony Electronics to your portfolio, but you are concerned about your projection for their growth rate. Pony's cost of equity capital (the discount rate for equity) is known to be 14% and they just paid a dividend of $3.50 per share. Most analysts are projecting constant growth of 6.25%, but you think that it might actually be 6.75%. By how much, in percentage terms, does this difference of opinion affect your estimate of Pony's price per share relative to the estimate implied by the analysts' forecast of growth rate? (Allow two decimals in the percentage but do not enter the % sign.)

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