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The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next four years. Its latest EPS was $6.00,

image text in transcribedimage text in transcribed The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next four years. Its latest EPS was $6.00, all of which was reinvested in the company. The firm's expected ROE for the next four years is 17% 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 16% per year. GG's market capitalization rate is 16% per year. Required: a. What is your estimate of GG's intrinsic value per share? Note: Round your answer to 2 decimal places. 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? Complete this question by entering your answers in the tabs below. The Generic Genetic (GG) Corporation pays no cash dividends currently and is not expected to for the next four years. Its latest EPS was $6.00, all of which was reinvested in the company. The firm's expected ROE for the next four years is 17% per year, during whic 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 fal to 16% per year. GG's market capitalization rate is 16% per year. Required: a. What is your estimate of GG's intrinsic value per share? Note: Round your answer to 2 decimal places. 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? Complete this question by entering your answers in the tabs below. What is your estimate of GG's intrinsic value per share? Note: Round your answer to 2 decimal places

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