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  3. 1oit enterprises recentiy paid a dividend, de, of

1oit Enterprises recentiy paid a dividend, De, of 32.75. It expects to have nonconstant growth...

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Accounting

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1oit Enterprises recentiy paid a dividend, De, of 32.75. It expects to have nonconstant growth of 1916 for 2 years follewed by a constant rate at 4% thereafer, The firmis reqt eturn is 11% a. How far away is the hortzon date? 1. The terminal, or horizon, date is the date when the growth rate becemes nonconstant. This occurs at time zero. It. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the begitning of year 2 . II3. The terminal, or horizon, cote is the date when the growth rate becomes constant. This occurs at the end of Year 2 . IN. The terminal, or horizon, date is infinity since commen stocks do not have a maturity date. v. The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of al future expected diyidends at time zere. b. What is the firmis harizon, or continuing, value? Do not round intermed ate colculations. Plound your answer to the nearet cent. $ 6. What is the firm's intrinsic value todoy, P0> Do not round intermediate calculations. Rosund your answer to the nesert cmt. 5

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