Question

11)

Holt Enterprises recently paid a dividend, D_{0}, of
$3.00. It expects to have nonconstant growth of 22% for 2 years
followed by a constant rate of 7% thereafter. The firm's required
return is 14%.

- How far away is the horizon date?
- The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.
- The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2.
- The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.
- The terminal, or horizon, date is infinity since common stocks do not have a maturity date.
- The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero.

-Select-IIIIIIIVVItem 1 - What is the firm's horizon, or continuing, value? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

- What is the firm's intrinsic value today, ? Do not round
intermediate calculations. Round your answer to the nearest cent.
$

12)

Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is expected to grow at a constant rate of 6% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 13%. If Scampini has 50 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent.

Each share of common stock is worth $ , according to the corporate valuation model.

Answer #1

Holt Enterprises recently paid a dividend, D0, of
$3.00. It expects to have nonconstant growth of 15% for 2 years
followed by a constant rate of 6% thereafter. The firm's required
return is 19%.
How far away is the horizon date?
The terminal, or horizon, date is infinity since common stocks
do not have a maturity date.
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected...

Holt Enterprises recently paid a dividend, D0, of
$3.00. It expects to have nonconstant growth of 23% for 2 years
followed by a constant rate of 8% thereafter. The firm's required
return is 16%.
How far away is the horizon date?
The terminal, or horizon, date is infinity since common stocks
do not have a maturity date.
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected...

Holt Enterprises recently paid a dividend, D0, of
$1.75. It expects to have nonconstant growth of 16% for 2 years
followed by a constant rate of 3% thereafter. The firm's required
return is 16%.
How far away is the horizon date?
The terminal, or horizon, date is infinity since common stocks
do not have a maturity date.
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected...

Holt 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 11%.
How far away is the horizon date?
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the end of Year 2.
The terminal, or horizon, date is infinity since common stocks
do not have a maturity date.
The...

Holt Enterprises recently paid a dividend, D0, of
$1.75. It expects to have nonconstant growth of 12% for 2 years
followed by a constant rate of 9% thereafter. The firm's required
return is 18%.
How far away is the horizon date?
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected dividends
at time zero.
The terminal, or horizon, date is the date when the growth rate...

Holt Enterprises recently paid a dividend, D0, of
$2.00. It expects to have nonconstant growth of 22% for 2 years
followed by a constant rate of 3% thereafter. The firm's required
return is 17%.
How far away is the horizon date?
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the beginning of Year 2.
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at...

Holt Enterprises recently paid a dividend, D0, of
$2.25. It expects to have nonconstant growth of 20% for 2 years
followed by a constant rate of 9% thereafter. The firm's required
return is 15%.
How far away is the horizon date?
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at the beginning of Year 2.
The terminal, or horizon, date is the date when the growth rate
becomes constant. This occurs at...

Holt Enterprises recently paid a dividend, D0, of
$3.75. It expects to have nonconstant growth of 24% for 2 years
followed by a constant rate of 3% thereafter. The firm's required
return is 9%.
How far away is the horizon date?
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected dividends
at time zero.
The terminal, or horizon, date is the date when the growth rate...

Holt Enterprises recently paid a dividend, D0, of
$3.75. It expects to have nonconstant growth of 21% for 2 years
followed by a constant rate of 4% thereafter. The firm's required
return is 19%.
How far away is the horizon date?
The terminal, or horizon, date is infinity since common stocks
do not have a maturity date.
The terminal, or horizon, date is Year 0 since the value of a
common stock is the present value of all future expected...

Holt Enterprises recently paid a dividend, D0, of $4.00. It
expects to have nonconstant growth of 14% for 2 years followed by a
constant rate of 8% thereafter. The firm's required return is 16%.
How far away is the horizon date? The terminal, or horizon, date is
the date when the growth rate becomes constant. This occurs at the
beginning of Year 2. The terminal, or horizon, date is the date
when the growth rate becomes constant. This occurs at...

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