$5$ Village Investments Ltd$.$ is reviewing RNM Fisheries Company $($RNM$).$ The company pays no cash dividends at the moment and is not expected to for the next $4$ years. RNM latest Earnings Per Share $($EPS$)$ was $$5,$ which was plowed back into the company. Its expected Return on Equity for the next $4$ years is $20\%$ per year, during which time it is expected to continue to plow back all its earnings. Starting in year $5,$ RNM$\text{'}$s Return on Equity on new investments is expected to fall to $15\%$ pa$.$ RNM$\text{'}$s market capitalization rate is $15\%$ pa$.$

A What is Village Investments expected intrinsic value per share of RNM$?8$

B Village Investments have assumed that RNM$\text{'}$s current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year?

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