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Bluebell Company is expected to have dividends grow at a rate of 8% for the next four years. Afterward, the dividends will settle down to
Bluebell Company is expected to have dividends grow at a rate of 8% for the next four years. Afterward, the dividends will settle down to a more sustainable growth rate of 6% which is expected to last forever.The company just completed a dividend payout of $5.00 per share this year. If its cost of equity is 10%, cost of debt is 5% and debt to equity ratio is 40%, what is the intrinsic value of its stock?
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