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Nonconstant growth valuation Holt Enterprises recently paid a dividend, D0, of $1.75. It expects to have nonconstant growth of 16% for 2 years followed by
Nonconstant growth valuation
Holt Enterprises recently paid a dividend, D0, of $1.75. 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 16%.
What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations. $
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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