Consider a French company that pays out 70 percent of its earnings. Its next annual earnings are expected to be €4 per share. The required return for the company is 12 percent. In the past, the company's compound annual growth rate (CAGR) has been 1.25 times the world's GDP growth rate. It is expected that die world's GDP growth rate will be 2.8 percent p.a. in the future. Assuming that the firm's earnings will continue to grow forever at 1.25 times the world's projected growth rate, compute the intrinsic value of the company's stock and its intrinsic P/E ratio.