The correct answer is: C. terminal value
The terminal value is the value of a company or asset at the end of a specific time period. It is used in discounted cash flow (DCF) analysis to estimate the present value of a company’s future cash flows.
The horizon value is the value of a company or asset at the end of the explicit forecast period. It is used in DCF analysis to estimate the present value of a company’s future cash flows after the explicit forecast period.
The hypothesis value is a hypothetical value that is used as a starting point for negotiations. It is not an actual value, but rather a value that is used to start the discussion.
In the context of the question, the value of future dividends after the horizon date is classified as the terminal value. This is because the terminal value is the value of a company or asset at the end of a specific time period, which in this case is the horizon date.