You are evaluating a stock that paid a $3.20 dividend last year on $5.30 of earnings. The stock is trading in the market at a

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You are evaluating a stock that paid a $3.20 dividend last year on $5.30 of earnings. The stock is trading in the market at a price of $132.86. The company currently has a growth rate of 15.4% per year. Understanding this is not sustainable, the company indicates it expects the ROE to drop by 8 percentage points next year then another 6 percentage points the following year and then 12 percentages points the next year until ROE reaches a steady state level. Given a risk free rate of 1.45% and an expected market return of 6.25% and a forecasted beta of 1.28, estimate the intrinsic value of the stock. Assume no change to the payout ratio.