The Generic Genetic $($GG$)$ Corporation pays no cash dividends currently and is not expected to for the next four years. Its latest EPS

was $$5\mathrm{.}4,$ all of which was reinvested in the company. The firm's expected ROE for the next four years is $20\%$ per year, during which

time it is expected to continue to reinvest all of its earnings. Starting in year $5,$ the firm's ROE on new investments is expected to fall to

$19\%$ per year. GG$\text{'}$s market capitalization rate is $19\%$ per year.

a$.$ What is your estimate of GG$\text{'}$s intrinsic value per share? $($Do not round intermediate calculations. Omit the $"$$$"$ sign in your

response. Round your answer to $2$ decimal places.$)$

GG$\text{'}$s intrinsic value

b$.$ Assuming its current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year? $($Omit

the $"\%"$ sign in your response.$)$

Price should

at a rate of

$\%$ over the next year.