What is the intrinsic value of a share at Foot Locker using the H model? The dividends have been $3.00, $3.50, $3.90, and recently $4.85. Estimate the current value of Foot Locker, where stage 1 lasts 5 years, the growth rate is the arithmetic average of the last four years' dividend growth rate, stage 2 lasts 8 years with a linearly declining growth rate, and stage 3 has a growth rate of 3% in perpetuity.
a) $45.72
b) $50.34
c) $55.18
d) $60.25