Hart enterprises recently paid a dividend d0 of 375 what is


Nonconstant growth valuation

Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 4% thereafter. The firm's required return is 20%.

a. What is the firm's horizon, or continuing, value? Round your answer to two decimal places.

b. What is the firm's intrinsic value today?

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Financial Management: Hart enterprises recently paid a dividend d0 of 375 what is
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