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Hart Enterprises recently paid a dividend, of $1.25. It exp

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Hart Enterprises recently paid a dividend, of $1.25. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 10%.

A. How far away is the terminal, or horizon, date?
B. What is the firm's horizon, or terminal, value?
C. What is the firm's intrinsic value today?

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Hart Enterprises recently paid a dividend, of $1.25. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 10%.

A. How far away is the terminal, or horizon, date?
B. What is the firm's horizon, or terminal, value?
C. What is the firm's intrinsic value today?

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? Note to student: The answer to this question is based on a combination of my teaching notes from assisting with teaching the same course text you're using, and my own personal calculations. Please use it as a format for your own answers, and use the answer wording as a guide when constructing your own answers. I based my information on ...

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