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The Boulder Brass Works Company (BBWC) is a small-capitalization machine shop that has found a...

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The 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 dividends next year. In year 2 it expects its growth to begin decelerating, and so plans to begin paying dividends. At the end of year 2 it plans to pay a dividend of $3.00, and at the end of year 3 it plans to pay a dividend of $4.00. Beginning in year 4, BBWC's management believes that the company will have entered middle age. Management anticipates being able to sustain a dividend growth rate of 2% per year in year 4 and every year thereafter. Firms with similar growth and risk characteristics return 9% per year to their equity investors. What is BBWC's intrinsic value? You must show your work to receive full credit for this

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