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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 40%, a Return on Equity (ROE) of 15%, and had an EPS of $1.95 per share in the year just ended. The shareholders required rate of return is 13%. BMC just developed a new product line that accelerated its growth rate for the next 5 years before its competitors catch up. Now, BMC expects its EPS and Dividends to grow at 25% for the next 3 years, followed by a year of 20% growth, and then a year of 15% growth, before BMC settles down to the constant growth rate that you calculated in problem 11 in year 6. Using the Non-Constant Growth Model and the 5 years of non-constant 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 $12,300.456 then enter as 12300.46 in the answer box.

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