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• Growth rates for Athena Ltd for the next 3 years are the following: 35%, 28%...

• Growth rates for Athena Ltd for the next 3 years are the following: 35%, 28% and 22%. • The company then expects to grow at a constant rate of 9% forever. • They paid a dividend of $1.75 last week. The required rate of return is 20%.

  1. Calculate the stock’s horizon value. Which year does it fall into?
  2. Calculate the market value of Athena’s shares today.
  3. Is this stock worth buying, if its current market price on the London Stock Exchange is $25.50? Explain.
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