Holt Enterprises recently paid a dividend, Do, of $1.00. tt expects to have nonc
ID: 2824664 • Letter: H
Question
Holt Enterprises recently paid a dividend, Do, of $1.00. tt expects to have nonconsf a. How far away is the horizon date? L. The terminal, or horon, date is the date when the growth rate becomes constant This occurs at the bepinning of year 2. terminal, or horizon, date is the date when the growth ate becomes constant. This occurs at the end of year 2 titl The terminal, or horizon, date is infinity since common stocks do not have a maturity date V. The terminal, or horizon, date is Year 0 since the value of acommon stock is the present va V. The termina, or horizon, date is the date when the growth rate becomes noncenstane.T his oocurs at s horzon, or consinuing, value? Do not round intermed ate caloulations, Round your ssner to the nesrest cent value today, ?,Donat reund men elate oseu ewhat 4 the frm's "ernmeExplanation / Answer
a. II. The terminal or horizon date is the date when the growth rate becomes constant. This occurs at the end of Year 2
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