Questions Problem 9.04 (Nonconstant Growth Valuation) Question 11 of 20 9 Check My Work (3 remaining) 10 11. eBook Problem Walk-Through 12 13 14. 15 Holt Enterprises recently paid a dividend, Do, of $2.25. It expects to have nonconstant growth of 12% for 2 years followed by a constant rate of 9% thereafter. The firm's required retumis 20%. 6. How far away is the horizon date? 1. 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 OO Oo 16. 17 18. -Select- 19. 20 b. What is the firm's horizon, or continuing, value? Do not round intermediate cakulations. Round your answer to the nearest cent c. What is the firm's intrinsic value today, P. ? Do not round intermediate calculations. Round your answer to the nearest cent. $ Check My Work feminine