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Suppose that the firm recently paid a dividend D0=$2.20. It expects to have nonconstant growth of gs=9% for 2 years and then a constant rate

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Suppose that the firm recently paid a dividend D0=$2.20. It expects to have nonconstant growth of gs=9% for 2 years and then a constant rate of gn=4% thereafter. The firm's required return is r1=8%. According to the problem walk-through video, what is the formula for the terminal, or continuing value, at the end of year 2? P2=r118D1P2=(1+e1)2D2P2=(1+r1)3D3P2=r18D2 According to the problem walk-through video, what is the formula for the firm's intrinsic value today? P0=(1+2)1D1+(1+r2)2D2+(1+r1)3D1+(1+r1)2P2P0=(1+1)2P2P0=(1+r2)1D1+(1+r2)2D2+(1+r2)2P2P0=(1+2)1D1+(1+2)2D2+P2 The firm's horizon value is The firm's intrinsic value is

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