The risk free rate of return is 3%, the expected return on the market portfolio is 11% and the stock of Xyr Corp has a beta coefficient of 1.2. Kyr pays out 35% of its earnings in dividends and the latest earnings announced were $7.50/share. Dividends were just paid and are expected to be paid annually. You expect that Xyr will earn an RoE of 19% per year on all reinvested earnings forever.

a. What is the intrinsic value of a share of Xyr stock?