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Big Manufacturing Company ( BMC ) has a dividend payout ratio of 4 0 % , a Return on Equity ( ROE ) of 1
Big Manufacturing Company BMC has a dividend payout ratio of a Return on Equity ROE of and had an EPS of $ per share in the year just ended. The shareholders required rate of return is BMC just developed a new product line that accelerated its growth rate for the next years before its competitors catch up Now, BMC expects its EPS and Dividends to grow at for the next years, followed by a year of growth, and then a year of growth, before BMC settles down to the constant growth rate that you calculated in problem in year Using the NonConstant Growth Model and the years of nonconstant growth, what is the intrinsic value of BMCs stock to the nearest cent now? Do not enter $ or comma in the answer box. For example, if your answer is $ then enter as in the answer box.
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