Question
Holt Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 17% for 2 years followed by a constant rate
Holt Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 17% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 12%. I am needing part C.
A)How far away is the horizon date? The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2
B)What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. $ 90.69
C)What is the firm's intrinsic value today, ? Do not round intermediate calculations. Round your answer to the nearest cent. _________
$ 81.22 its saying my 81.22 is wrong what am I doing wrong?
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