Problem 9-4 Nonconstant growth valuation Holt Enterprises recently paid a dividend, D0, of $3.25. It expects to
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Problem 9-4 Nonconstant growth valuation
Holt Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 9%.
- 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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