Question
9-4. NONCONSTANT GROWTH VALUATION: Holt Enterprises recently paid a dividend, D>0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed
9-4. NONCONSTANT GROWTH VALUATION: Holt Enterprises recently paid a dividend, D>0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 12%.
- How far away is the horizon date?
- What is the firm's horizon, or continuing value?
- What is the firm's intrinsic value today, P>0?
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
