Holt Enterprises recently paid a dividend, D0, of $2.25. It expects to have nonconstant growth of 23% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 19%.

aHow far away is the horizon date?

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

IIThe 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.

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

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

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

b

c-Select-IIIIIIIVV

d

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

fWhat is the firm's intrinsic value today,

? Do not round intermediate calculations. Round your answer to the nearest cent. $