The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next 4 years. Its latest EPS was $5.8, all of which was reinvested in the company. The firms expected ROE for the next 4 years is 24% per year, during which time it is expected to continue to reinvest all of its earnings. Starting in year 5, the firm will payout all of its earnings as dividend and the firms ROE on new investments is expected to fall to 19% per year. GGs market capitalization rate is 23% per year.

a. What is your estimate of GGs intrinsic value per share?