Suppose that the firm recently paid a dividend D0=$3.25. It expects to have nonconstant growth of gs=10% for 2 years and then a constant rate of gn=6% thereafter. The firm's required return is rs=9%. According to the problem walk-through video, what is the formula for the terminal, or continuing value, at the end of year 2 ? P2=(1+rx)2D2P2=rxgD3P2=rxgD2P2=(1+rx)3D3 According to the problem walk-through video, what is the formula for the firm's intrinsic value today? P0=(1+rn)2P2P0=(1+r2)1D1+(1+r2)2D2+(1+r2)2P2P0=(1+rn)1D1+(1+rn)2D2+(1+rn)3D1+(1+r2)2P2P0=(1+rx)1D1+(1+rx)2D2+P2 The firm's horizon value is The firm's intrinsic value is Step 3: Practice: Nonconstant Growth Valuation Now it's time for you to practice what you've learned. Suppose that the firm recently paid a dividend $3.25. It expects to have nonconstant growth of 10% for 3 years and then a constant rate of 6% thereafter. The firm's required return is 9%. The firm's horizon, or continuing, value is and its intrinsic value today is