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aipan Trading Company is a mature company that had an EPS of $6 last year (E0). The expected ROE is 14%. An appropriate required return

aipan Trading Company is a mature company that had an EPS of $6 last year (E0). The expected ROE is 14%. An appropriate required return on the stock is 12%. If the firm has a plowback ratio of 80% (or a payout ratio of 20%), its intrinsic value assuming it constantly grows dividends at its sustainable rate should be _________.

a. $22.35

b. $69.77

c. $750.00

d. $834.00

e. $166.75

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