Question: Roberts Roofing currently earns $4 per share. Its return on equity is 20% and it retains 50% of its earnings (both figures are expected to

Roberts Roofing currently earns $4 per share. Its return on equity is 20% and it retains 50% of its earnings (both figures are expected to be maintained indefinitely) Stocks of similar risk are priced to return 15%. What is the intrinsic value of Roberts stock?

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