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Candyland Inc. recently paid a dividend, D0, of $4.50. It expects to have nonconstant growth of 12% for 3 years followed by a constant rate
Candyland Inc. recently paid a dividend, D0, of $4.50. It expects to have nonconstant growth of 12% for 3 years followed by a constant rate of 5% thereafter. The firms required return is 8%.
a) How far away is the horizon date?
b) What is the firms horizon, or continuing value?
c) What is the firms intrinsic value today?
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