Walters expected the high growth stage to phase into the stable-growth stage evenly over a two year period, before reaching stable growth in year 5. Dividends per share are currently $6.4. The risk free rate is 4% and the market risk premium is 5%.

Estimate the intrinsic value of the company shares.

High-Growth Stage 18% 25% Return on assets Payout ratio Debt ratio Length Beta Stable-Growth Stage 9% 75% 40% Indefinite 1.00 20% 2 years 1.36