ABC Company shares are currently (early 2005) trading at $25 per share. The financial analysts collected the following information: The company has just made a net profit of $45 million (end of 2004) The outstanding shares of ABC are 18 million Management's usual policy is to reinvest 70% of benefice Enterprise beta is 1.3 2005 earnings per share are expected to be 20% higher than 2004. The risk-free rate of return is rs=6% The anticipated market rate of return is 15% The annual growth rate of earnings per share will be 10% from 2006 to 2008 inclusive. Thereafter, the growth rate will be 8% and this indefinitely.

Based on the information above: Determine the intrinsic value of this action at the beginning of the year 2005