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1.)maxwell mining company ore reserves are b depletes so sales are failing. Also, because its pit is getting deeper each year, itscosts are rising. as a result the company earnings and dividends are declining at the constant rate of 9% per year. if D0= $3 and rs=16%,

what is the value of maxwell mining stock? round your answer to the nearest cent.

2.) Holt enterprises recently paid a dividend d0, of $2.25. it expects to have a nonconstant growth of 23% for 2 years followed by a constant rate of4% thereafter. the firm required return is 10%.

A(how away is the horizon date

i.the terminal or horizon date is infinity since common stocks do not hage a maturity date

II. the terminal or horizon date is year 0

III. the terminal or horizon date is when the growth becomes nonconstant. this occurs at time zero

Iv. the terminal or horizon date is the date when the growth rate becomes constant. this offirs at the beginning of year 2.

V. The terminal, or horizon, date is the date when the growth rate becomes constant. this occurs at the end of year 2

b) what is the firm horizon, or contuing value?

c). what is the firm intrunsic value today P0?

he canstant rate of 9% per yeat, if Ds=$3 and nn=16%, what is the volue of Maxwell Minisg's stock? Bound ysur antwer to the nearest cent. a. How for away is the horizon date? 1. The terminal, or horizon, date is infinity since common stocks do not have a maturily date. 11. The terminal, or horizon, date is Year since the value of a common stock is the present volue of all future expected divdenss at time revi: III. The terminal, or horizon, date is the date when the growth rate becemes nonconstant, This octurs at time zero IV. The terminal, or horizon, date is the date when the growth rate becomes constant. TDs occurs ot the beginning of Year. 2. V. The terminal, or horizon, dote is the date when the growth rate becomes constant. Ths occurs st the end of vear 2

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