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What is the firm horizon or continuing value

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Reference no: EM133185098

Question - NONCONSTANT GROWTH VALUATION - Hart Enterprises 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 5% thereafter. The firm's required return is 10%.

Required -

a. How far away is the horizon date? 

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

c. What is the firm's intrinsic value today, ˆP0?

Reference no: EM133185098

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