NONCONSTANT GROWTH VALUATION Holt Enterprises recently paid a dividend, Do, of $3.50. It expects to have nonconstant growth of 15% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 18%. a. How far away is the horizon date? I. The terminal, or horizon, date is infinity since common stocks do not have a maturity date. II. The terminal, or horizon, date is Year O since the value of a common stock is the present value of all future expected dividends at time zero. III. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2. V. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. -Select- b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations. c. What is the firm's intrinsic value today, Po? Round your answer to two decimal places. Do not round your intermediate calculations. CORPORATE VALUATION Scampini Technologies is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant rate of 6% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 11%. If Scampini has 45 million shares of stock outstanding, what is the stock's value per share? Round your answer to two decimal places. Each share of common stock is worth $ according to the corporate valuation model. PREFERRED STOCK VALUATION Earley Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 10%, and its par value is $100. a. What is the stock's value? Round your answer to two decimal places. b. Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value? Round your answer to two decimal places. VALUATION OF A DECLINING GROWTH STOCK Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 9% per year. If Do = $3 and rs = 10%, what is the value of Maxwell Mining's stock? Round your answer to two decimal places