You have a required rate of return of 7.92% and believe this is consistent with

other investors preferences. You are evaluating a manufacturing company

whose earnings next year are expected to be $4.10 per share. You observe that

the average peer has a P/E ratio of 12.53x. While your company has a similar

payout ratio to peers of 84%, your company has an ROE 1.21 percentage

points higher than peers. Estimate the intrinsic value of your company.