NONCONSTANT GROWTH VALUATION Hart
Enterprises recently paid a divi— dend, D , 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 horizon date?
b. What is the firm's horizon, or continuing, value?
c. What is the firm's intrinsic value today, P ?