You are evaluating a stock that does not pay a dividend. The company generates $0.65 of earnings and trades at $29.25. Last year's ROE was 4.3%, however the company is undergoing initiatives to boost ROE. They expect ROE to rise by 5.7 percentage points next year, then another 8.4 percentage points the following year and then 4.2 percentage points before leveling off. Once ROE reaches a steady state level, the company intends to initiate a dividend with a payout ratio of 75%. Given a risk free rate of 1.45% and an expected market return of 6.25% and a forecasted beta of 1.89 estimate the intrinsic value of the stock.