he Boulder Brass Works Company (BBWC) is a small-capitalization machine shop that has found a rapidly growing niche market for its custom-machined brass parts. Its business is growing so fast that it has decided not to pay a dividend for the next 3 years. However, in year 4 it expects its growth to decelerate and so plans to begin paying dividends at that time. At the end of year 4 it plans to pay a dividend of $2.00. At the end of year 5 it plays to pay a dividend of $4.00. Beginning in year 6, BBWC's management believes that the company will have entered its middle age. Management anticipates being able to sustain a dividend growth rate of 2% per year in year 6 and every year thereafter. Firms with similar growth and risk characteristics return 13% per year to their equity investors. What is BBWC's intrinsic value? You must show your work to receive full credit for this problem.