Nonconstant growth valuation
Hart Enterprises recently paid a dividend, D0, of $2.75. It expects to have nonconstant growth of 12% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 15%.
What is the firm's horizon, or continuing, value? Round your answer to two decimal places.
What is the firm's intrinsic value today, P0? Round your answer to two decimal places.