Suppose that the firm recently paid a dividend De = $5.35. It expects to have nonconstant growth of g, 9% for 2 years and then a constant rate of g 5% thereafter. The firm's required return is r, = 8%. According to the problem walk through video, what is the formula for the terminal, or continuing value, at the end of year 271 O P= Dy 76-9 O P = D (1+r) P D 7-9 D OP= (147) According to the problem walk-through video, what is the formula for the firm's intrinsic value today? D D O P = + + P D D B P= + + (147) (14) ( D D D OP= + +++ OP= A 1 Dividend D Value D 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 $5.35. It expects to have nonconstant growth of 9% for 3 years and then a constant rate of 5% thereafter. The firm's required return is 8%. The firm's horizon, or continuing, value is and its intrinsic value today is D