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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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