Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have...

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Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have...

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%.

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

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Answer 1

Answer #1

Cash flows pv @ 20% 0.833333 0.69444 (4.87*1.04)/(0.20-0.04)0.69444 | Present value $3.56 $3.38 Year $4.87 $31.68 2 Price at

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Answer 2

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Hart Enterprises recently paid a dividend, D0, of $1.25. It expects to have non-constant growth of...

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Holt Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of...

Holt Enterprises recently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of...

Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of $3.75. It expects to have...

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