Stanley Corp. paid a dividend of $2.00 in the year that just ended. Analysts expect that dividends will grow by 30% this year, 20% in the second year, and by 10% in the third year. After the third year they plan to maintain a constant retention rate of 50%. Analysts forecast that the return on new equity investment for Stanley Corp. after the third year would be 10%. The required rate of return (r_s) on Stanley Corps stock is 9%.

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

Group of answer choices

$85.80

$94.38

$90.09

$57.75