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Village Investments Ltd . is reviewing RNM Fisheries Company ( RNM ) . The company pays no cash dividends at the moment and is not

Village Investments Ltd. is reviewing RNM Fisheries Company (RNM). The company pays no cash dividends at the moment and is not expected to for the next 4 years. RNM latest Earnings Per Share (EPS) was $5, which was plowed back into the company. Its expected Return on Equity for the next 4 years is 20% per year, during which time it is expected to continue to plow back all its earnings. Starting in year 5, RNM's Return on Equity on new investments is expected to fall to 15% pa. RNM's market capitalization rate is 15% pa.
A)What is Village Investments expected intrinsic value per share of RNM?
B) Village Investments have assumed that RNM's current market price is equal to its intrinsic value, what do you expect to happen to its price over the next year?
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