ABC Ltd. recently reported earnings-per-share of $0.75 in its financial statements for 2016, which also show shareholders equity of $250 million and total assets of $340 million. Analysts are forecasting earnings-per-share of $0.80 and $1.20 for the next two years respectively. The company has 29 million shares trading at a price of $19.00. In all of the following calculations assume a zero dividend payout ratio and a required return on the shares of 9%.

Assuming a growth rate in residual earnings of 4% after 2018, calculate the intrinsic value of the company.