Now lets go back to the perpetual operation assumption. Also, imagine that I can grow my revenue and income $5\%$ annually by expanding into BOWSA and YOWSA $($blackberry and yucca flavors$).$ What would be a fair $\%$ stake for Warren Buffet in this case assuming that we assume that the initial $$20$ million on advertising will allow us to launch the follow up flavors without additional ads. Hint$-$ for growth stocks the present value of dividends is equal to the initial dividend divided by the discount rate minus the growth rate. Hence, its Div$1/(.10-\mathrm{.}05)$ as opposed to Div $\frac{1}{.}10$ for the no growth valuation. This is a handy math fact that is not too hard to prove, so it's useful for valuing stocks that tend to grow $($in the real world$)$ But it does require assuming perpetual growth forever so valuation is harder practice $($a mix of growth in the early life cycle of a company followed by steady dividends or slower growth or even declining profits after the mature phase$)$

None of these are accurate

PV of dividends is $$80$ million so Buffet would give me $$20$ million for a $25\%$ stake

PV of divide$3$nds is $$60$ million so a $33\%$ stake makes sense

PV of dividends is still $$40$ million so no change