Analyst forecasts that Stanley Corp will pay dividends of $2.00, $2.40 and $2.60 in the next three years (i.e. D₁=2.00, D₂=2.40, D₃=2.60. After the third year, the dividends are expected to grow at a constant rate of 4%. The required rate of return (r_s) on Stanley Corps stock is 9%.

How much is the horizon value (at the horizon date)?

$54.08

$52.00

$30.04

$67.60