Holt Enterprises recently paid a dividend, $D_0,$ of $$2\mathrm{.}75.$ It expects to have nonconstant growth of $18\%$ for $2$ years followed by a constant rate of $3\%$ thereafter. The firm's

required return is $9\%.$

a$.$ How far away is the horizon date?

I. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.

II$.$ The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year $2.$

III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year $2.$

IV$.$ The terminal, or horizon, date is infinity since common stocks do not have a maturity date.

V$.$ 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 time zero.

b$.$ What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent.

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c$.$ What is the firm's intrinsic value today, widehat$(P{)}_0?$ Do not round intermediate calculations. Round your answer to the nearest cent.

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