Holt Enterprises recently paid a dividend, D0, of $3.75. It expects to have nonconstant growth of 23% for 2 years followed by a constant rate of 6% thereafter. The firm's required return is 9%. a. How far away is the horizon date?

I. 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.

II. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero.

III. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2.

IV. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2.

V. The terminal, or horizon, date is infinity since common stocks do not have a maturity date.

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, P0? Round your answer to two decimal places. Do not round your intermediate calculations.

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars