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Analyst forecasts that Stanley Corp will pay dividends of $2.00, $2.40 and $2.60 in the next three years (i.e. D 1 =2.00, D 2 =2.40,
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 (rs) on Stanley Corps stock is 9%.
How much is the horizon value (at the horizon date)?
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