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Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate
Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 8% thereafter. The firm's required return is 10%. How far away is the horizon date?
A -What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.
B -What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.
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