1. A company pays no cash dividends currently and is not expected for the next five years. Its current EPS is $10. The firms expected ROE for the next five years in 20% per year, and during this time it is expected to continue to reinvest all of its earnings. Starting six years from now the firms ROE on new investments is expected to fall to 15% and the company is expected to start paying out 40% of its earnings in dividends, which it will continue to do forever after. The capitalization (required rate of return) is 15%. What is the value of the stock today?