What is the required rate of return

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1- Holt Enterprises recently paid a dividend, D0, of $1.50. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 9% thereafter. The firm's required return is 20%.

What is the firm's intrinsic value today, P0? Round your answer to two decimal places. Do not round your intermediate calculations.

2- Preferred stock valuation

Farley Inc. has perpetual preferred stock outstanding that sells for $42.00 a share and pays a dividend of $3.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

Reference no: EM131903267

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