Non constant Growth ValuationEnterprises recently paid a divident, D0, of $2.75. It expects to have nonconstant growth of 18% for 2 years followed by a constant rate of 6% thereafter. The firms required return is 12%.
a. How far away is the horizon date?
b. What is the firm's horizon, or continuing value?
c. What is the firm's intrinsic value today, P0?