ABC pays out 40% of its earnings in dividends and has a beta coefficient of 1.2.The latest earnings announced for ABC were 10 USD/share.

Calculate the intrinsic value per share for ABC if you know the following

a)Dividends were just paid and are expected to be paid annually

b)risk-free rate of return is 8% and the expected rate of return on the market portfolio is 15%

c)We expect ABC to earn a ROE of 20% per year on all reinvested earnings forever