1. A company's series B,8% preferred stock has the following features:
·A par value of $50 and pays quarterly dividends.
·Its current market value is $35.
·The shares are retractable (at par) with the retraction date set for three years from today.
·Similarly rated preferred issues have an estimated nominal required rate of return of 12%.
·Analysts expect a sustainable growth rate of 4% for the company's earnings.
The intrinsic value estimate of a share of this preferred issue is closest to: