Question
Please show clear workout Hart Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 25% for 2 years followed
Please show clear workout
Hart Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 25% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 19%.
What is the firm's horizon, or continuing, value? Round your answer to two decimal places.
What is the firm's intrinsic value today, P0? Round your answer to two decimal places.
Trivoli Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is currently selling for $94.00; but flotation costs will be 8% of the market price, so the net price will be $86.48 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places.
Warr Corporation just paid a dividend of $2 a share (that is, D0 = $2). The dividend is expected to grow 7% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
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