Campbell’s Soup (CPB) currently trades for $42.78 and has 300 million shares outstanding. According to most recent 10-K report, the book value per share is $6.45. The current annual dividend is $1.40 and has had a historical growth rate of 3% which analysts expect to continue going forward.

(i) The CEO of Campbell’s is excited about the near term growth opportunities of expansion abroad. She anticipates that as the result of expansion the dividend will grow by 5% for each of the next 10 years before returning to a long-run expected growth rate of 3%. She also recognizes that expansion abroad is risky and increases the stock’s required return to 8%. Based on her estimates, what is the new intrinsic value of the stock?