Question
Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate
Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 4% thereafter. The firm's required return is 20%.
b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places.
c. What is the firm's intrinsic value today?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
