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9-4 : NONCONSTANT GROWTH VALUATION HartEnterprises recently paid a dividend, D0, of $1.25. It expectsto have a nonconstant growth of 20% for 2 years followed

9-4: NONCONSTANT GROWTH VALUATION HartEnterprises recently paid a dividend, D0, of $1.25. It expectsto have a nonconstant growth of 20% for 2 years followed by aconstant rate of 5% thereafter. The firms requiredreturn is 10%.

a. How far away is theterminal, or horizon, date?

b. What is the firmshorizon or terminal, value?

c. What is the firmsintrinsic value today, P^0?

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