Question: Please check the attachment for the question I need help with. Thank you !! 1-Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of

 Please check the attachment for the question I need help with.

Please check the attachment for the question I need help with. Thank you !!

Thank you !! 1-Nonconstant growth valuation Hart Enterprises recently paid a dividend,

1-Nonconstant growth valuation Hart Enterprises recently paid a dividend, D0, of $1.25. It expects to have nonconstant growth of 20 percent for 2 years followed by a constant rate of 5 percent thereafter. The firm's required return is 10 percent. a. How far away is the terminal, or horizon, date? b. What is the firm's horizon, or terminal, value? c. What is the firm's intrinsic value today, P0? 2-Valuation of a constant growth stock A stock is expected to pay a dividend of $0.50 at the end of the year (that is, D1 _ 0.50), and it should continue to grow at a constant rate of 7 percent a year. If its required return is 12 percent, what is the stock's expected price 4 years from today? 3-Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 7 percent rate. Dozier's WACC is 13 percent. a. What is Dozier's terminal, or horizon, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) b. What is the firm's value today? c. Suppose Dozier has $100 million of debt and 10 million shares of stock outstanding. What is your estimate of the price per share? 4-Corporate value model Barrett Industries invests a lot of money in R&D, and as a result it retains and reinvests all of its earnings. In other words, Barrett does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Barrett's stock. The pension fund manager has estimated Barrett's free cash flows for the next 4 years as follows: $3 million, $6 million, $10 million, and $15 million. After the 4th year, free cash flow is projected to grow at a constant 7 percent. Barrett's WACC is 12 percent, its debt and preferred stock total to $60 million, and it has 10 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? b. What is the firm's terminal value? c. What is the firm's total value today? d. What is an estimate of Barrett's price per share

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