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Henry Inc. recently paid a dividend, D0, of $3. It expects to have nonconstant growth of 20% for 3 years followed by a constant rate
Henry Inc. recently paid a dividend, D0, of $3. It expects to have nonconstant growth of 20% for 3 years followed by a constant rate of 6% thereafter. The firms required rate of return is 11%. a. How far away is the horizon date? b. What is the firms horizon value? c. What is the firms intrinsic value today, P0?
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