Question: I need help with second and third part required netiorn is iste. 7. Hiow far away is the horizon date? 1. The terminal, oc hocuror,
required netiorn is iste. 7. Hiow far away is the horizon date? 1. The terminal, oc hocuror, date is Yein 0 simce the value-ot a common stock is the present value of all furure expected dividends at time aero. II. The temiral, of honzon, date it the date when the growth rate tectomes noncunstant. This occura at time zero 1it. The tritunal, of horiton, date is the date when the gremth rate becomes constant. Thes occurs at the begineling of Year 2 . IV. The terminal, of horizon, date in the date when the gromth rate becomes constant. This occurs at the end of Yeat 2. 4. The teiminal, of hartoon, date is infinity since common stocks do not have a maturify date. D. What is the famis horizon, or cantinuing, vitue? Do not round intermediate calculations, Found vour answer to the nitarest cent. 5 (3) 5
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
