Calculate the firm intrinsic value

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Hewlett-Packard's (HP) expected earnings per share are $0.80. The required rate of return for HP is 15%. HP's ROE is 18% and plowback ratio is 25%. Using the constant-growth dividend discount method, calculate the firm's intrinsic value. Give your answer to the nearest cent (i.e. two decimal places).

Reference no: EM133070635

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