Candyland Inc. recently paid a dividend, D0, of $4.50. It ex…
Candyland Inc. recently paid a dividend, D0, of $4.50. It expects to have nonconstant growth of 12% for 3 years followed by a constant rate of 5% thereafter. The firm’s required return is 8%. a) How far away is the horizon date? b) What is the firm’s horizon, or continuing value? c) What is the firm’s intrinsic value today?