What is the firms horizon or continuing and value

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Reference no: EM131519616

NONCONSTANT GROWTH VALUATION Hart Enterprises recently paid a dividend, D_0, 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%.

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, P^_0?

Reference no: EM131519616

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