The Digital Electronic Quotation System (DEGS, Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $17.50, all of which was reinvested in the company. The firm's expected ROE for the next five years is 17% per year, and during this time it is expected to continue to reinvestof of its eamings. Starting in year 6 the firm's ROE on new investments is expected to fill to 12% and the company is expected to start paying out 45% of its earnings in cash dividends, which it will continue to do forever after. DEQSS market capitalization rates 24% per year. a. What is your estimate of DEOS intrins value per share? (De not round intermediate calculations. Round your answer to 2 decimal places) b. Assoming its custent market prke is equal to its intrinsic value what do you expect to happen to its price over the next year? (Round your dollar value to 2 decimal places.) Newt 3 ly SER * 3 $ 4 96 5 & 6 7 00 8 9 W E R Y U U - o P C S D F G H JK L X CV B N. M alt The Digital Electronic Quotation System (DEGS, Corporation pays no cash dividends currently and is not expected to for the next five years. Its latest EPS was $17.50, all of which was reinvested in the company. The firm's expected ROE for the next five years is 17% per year, and during this time it is expected to continue to reinvestof of its eamings. Starting in year 6 the firm's ROE on new investments is expected to fill to 12% and the company is expected to start paying out 45% of its earnings in cash dividends, which it will continue to do forever after. DEQSS market capitalization rates 24% per year. a. What is your estimate of DEOS intrins value per share? (De not round intermediate calculations. Round your answer to 2 decimal places) b. Assoming its custent market prke is equal to its intrinsic value what do you expect to happen to its price over the next year? (Round your dollar value to 2 decimal places.) Newt 3 ly SER * 3 $ 4 96 5 & 6 7 00 8 9 W E R Y U U - o P C S D F G H JK L X CV B N. M alt