Jaime Mangueira is a small investor who has come to you for an independent valuation of Tribini, a company in which he intents to invest a small amount of money. He is considering a 5% stake for a suggested price of CHF 30000.

Extracts from letters sent to Mangueiras from the companys Business Finance Manager on November 9 and 11, give more information about the companys future prospects.

Extract from Letter dated November 9

.the firms most recent divident was 5% of the comapnys holding of CHF 80'000 and it is expected to grow at 5% per annum into th foreseeable future.

Extract from Letter dated November 11

.as a result of the patent being granted on our new Mobile Blocker 5000 product, the growth of our firm will be far in excess of previous estimates and is now expected to be 20% for the foreseeable future. Further we wish to inform you that we are currently issuing a AAA rated Bond immediately

Assuming the growth rate of 20% upon receipt of patent grant lasts five years and then returns to 5% and assuming a cost of capital of 15% what could be the possible intrinsic value of Mangueiras holding today.(10% marks)