4. Problem 9.04 Click here to read the eBook: Valuing Nonconstant Growth Stacks NONCONSTANT GROWTH VALUATION Holt Enterprises recently paid a dividend, De, of $2.75. It expects to have no constant growth of 15% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 20%. a. How far away is the horizon date? 1 The terminal, or horizon, dat is Infinity since common stocks do not have a maturity date. 11. The terminal, or hortzon, date is Year since the value of a common stock is the present value of all future expected dividends at time zere. III. The terminal, or horizon, date is the date when the growth rate becomes no constant. This occurs at timerero IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2 V. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2 b. What is the firm's horizon, or continuing, value? Round your answer to two decimal places. Do not round your intermediate calculations. c. What is the firm's intrinsic value today, Au? Round your answer to two decimal places. Do not round your intermediate calculations