What is the firm horizon or continuing value

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Reference no: EM131333480

A florist recently paid a dividend, D0, of $1.25. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 9% thereafter. The company's required return is 19%.

1. What is the firm's horizon, or continuing, value?

2. What is the firm's intrinsic value today, P0?

Reference no: EM131333480

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