e have been provided with the information that

Okra Company’s last dividend was $1.00

dividend growth rate is expected to be constant at 15% for 2 years

which dividends are expected to grow at a rate of 10% forever

Okra’s required rate of return is 12%

What is the horizon or terminal value

For the yaer 1 Devidend will be 1*1.15 =1.15

For the yaer 2 Devidend will be 1.15*1.15 =1.3225

Terminal Value = Final Projected Year Cash Flow X (1+Long-Term Cash Flow Growth Rate)
(Discount Rate – Long-Term Cash Flow Growth Rate)

=1.3225+(1+0.10) /(12-10)

=7.3398