Suppose that the firm recently paid a dividend D0=$2.20. It expects to have nonconstant growth of g1=11% for 2 years and then a constant rate of gn=3% thereafter. The firm's required return is ri=10%. According to the problem walk-through video, what is the formula for the terminal, or continuing value, at the end of year 27 P2P2P2P2=r3PD2=r12D3=(1+r1)2D2=(1+r3)1D3 According to the problem walk-through video, what is the formula for the firm's intrinsic value today? P0=(1+p1)D1+(1+r1)2D2+P2 P0=(1+r0)1D1+(1+r1)1D1+(1+r1)2P1 P0=(1+n1)1D1+(1+r1)2D1+(1+n1)2D3+(1+n1)2P2 P0=(1+n)2F1 The firm's horizon value is The firm's intrinsic value is Now it's time for you to practice what you've leamed. Suppose that the firm recently paid a dividend $2.20, It expects to have nonconstant growth of 11% for 3 years and then a constant rate of 3% thereafter. The firm's required return is 10%. The firm's horizon, or continuing, value is and its intrinsic value today is