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a. How far away is the horizon date? 1. The tarmilnat, or herizon, date is the date when the orewth rate becomes canstant, This occur

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a. How far away is the horizon date? 1. The tarmilnat, or herizon, date is the date when the orewth rate becomes canstant, This occur at the begining of Yar 2. IIL. The terminal, or harizon, date is infinity since common stocks do not have a mativity date. Iv. Thin terminal, or heiten, date is Year 0 since the valise of a common stock in the bresent valut of all fiture expected dividenfte at time zero. V. The terminal, or horizon, date ia the date when the growth rate becomes nonconstant, The pecciv at time zero. c. What is the firmis intrinsic value todoy. P^0 ? Do not round intermediate calcutations, Round your ansisor to the nuarei cent. Holt Enterpnises recently paid a dividend, Do, of $3.25, It expects to have nonconstant growth of 139 for 2 yoars followed by a constant rate of age therealter, The fin required return is 12% a. How far away is the horizon date? 1. The terminal, of horizon, date is the date when the growth rate becomes constant. This occurs at the beginhing of Year 2. 11. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2 . IIt. The terminal, or horzon, date is infinity since common stocks do not have a maturity date. IV. The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at timit zitro. V. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. b. What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. 3 c. What is the firm's intrinsic value today, P^0 ? Do not found intermediate calculations. Round your answer to the nearest cent

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