NONCONSTANT GROWTH VALUATION Hart Enterprises recently paid a dividend, D 0 , of $1.25. It expects to have nonconstant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The...

NONCONSTANT GROWTH VALUATION Hart Enterprises recently paid a dividend, D₀, 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%.

• How far away is the horizon date?


• What is the firm’s horizon, or continuing, value?


• What is the firm’s intrinsic value today, ˆP0