Holtzman Clothiers's stock currently sells for $36 a share. Itjust paid a dividend of $2.25 a share (i.e., D₀ =$2.25). The dividend is expected to grow at a constant rate of 4% ayear.

1. What stock price is expected 1 year from now? Round your answerto two decimal places.
   $
   
2. What is the required rate of return? Round your answer to twodecimal places. Do not round your intermediate calculations.
   %

Holt Enterprises recently paid a dividend, D₀, of$3.75. It expects to have nonconstant growth of 19% for 2 yearsfollowed by a constant rate of 6% thereafter. The firm's requiredreturn is 17%.

1. How far away is the horizon date?
   1. The terminal, or horizon, date is the date when the growth ratebecomes nonconstant. This occurs at time zero.
   2. The terminal, or horizon, date is the date when the growth ratebecomes constant. This occurs at the beginning of Year 2.
   3. The terminal, or horizon, date is the date when the growth ratebecomes constant. This occurs at the end of Year 2.
   4. The terminal, or horizon, date is infinity since common stocksdo not have a maturity date.
   5. The terminal, or horizon, date is Year 0 since the value of acommon stock is the present value of all future expected dividendsat time zero.
   
   -Select-IIIIIIIVVItem 1
   
2. What is the firm's horizon, or continuing, value? Round youranswer to two decimal places. Do not round your intermediatecalculations.
   
   $
   
3. What is the firm's intrinsic valuetoday,  P?₀? Round your answer to twodecimal places. Do not round your intermediate calculations.
   
   $