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Holt Enterprises recently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of 16% for 2 years followed by a constant rate
Holt Enterprises recently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of 16% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 15%.
What is the firm's horizon, or continuing, value?
What is the firm's intrinsic value today ?
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