Non constant growth valuation

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Reference no: EM131842693

Non constant Growth ValuationEnterprises recently paid a divident, D₀, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 6% thereafter. The firms required return is 12%.

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, P₀?

Reference no: EM131842693

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