The AMCo Corp. pays no dividends currently. DPSO - $0.00 It is not expected to pay for the next 4 years. Its latest EPS (EPSO) = $5.90 The Retention Rate or plowback (b) was 100%. The Dividend Payout (1-b) = 0% The firm's expected ROE for the next 4 years is 16% per year. It is expected to continue to reinvest 100% of its earnigs over these 4 years. The firm's ROE will grow by 15% in year 5. The firm's Dividend in Year 5 will be equal to the ROE in year 5. This problem is treated as a variable growth rate problem. Determine the future dividends over the next 4 years. Determine P4 where it is = D5/K The firm's market capitalization rate is 17% per year. The 2 cash flows are the DPS and EPS. Discount the 4 years of dividends. Discount the 4 years of EPS. Disocunt the future Price @ year 4 (P4) What is the intrinsic value of the stock? Round answer to 2 decimal places. I

The AMCo Corp. pays no dividends currently. DPSo=$0.00 It is not expected to pay for the next 4 years. Its latest EPS (EPSo) =$5.90 The Retention Rate or plowback (b) was 100%. The Dividend Payout (1b)=0% The firm's expected ROE for the next 4 years is 16% per year. It is expected to continue to reinvest 100% of its earnigs over these 4 years. The firm's ROE will grow by 15% in year 5 . The firm's Dividend in Year 5 will be equal to the ROE in year 5 . This problem is treated as a variable growth rate problem. Determine the future dividends over the next 4 years. Determine P4 where it is = D5 /K The firm's market capitalization rate is 17% per year. I The 2 cash flows are the DPS and EPS. Discount the 4 years of dividends. Discount the 4 years of EPS. Disocunt the future Price@year 4 (P4) What is the intrinsic value of the stock? Round answer to 2 decimal places