Marcelo Enterprises just paid a dividend D0 of $2.5. The firm is expected to grow at 20% for three years, followed by a constant growth rate of 6% in perpetuity. Assume the equity cost of capital is 10%.

a. Calculate the dividend that will be paid at the end of each of the next 4 years (D1, D2, D3, and D4). Show calculations. Round to two decimal places.

b. Calculate the horizon value of the stock. Show calculations. Round to two decimal places.

c. Calculate the intrinsic value of a share of Nelly Enterprises. Show calculations. Round to two decimal places.