Holt enterprises recently paid a dividend d0 of 225 it


Nonconstant growth valuation

Holt Enterprises recently paid a dividend, D0, of $2.25. It expects to have nonconstant growth of 21% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 12%.

What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations.

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

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Financial Management: Holt enterprises recently paid a dividend d0 of 225 it
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