Question: Please solve without using Excel Horizon Inc. is a young virtual reality company. It is going through a period of high growth and has thus

Please solve without using Excel

Horizon Inc. is a young virtual reality company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year 6 it will pay a dividend of $2. This dividend will grow at a rate of 25% for the next 4 years. After that Horizon pledges to maintain a constant 5% growth rate in dividends, forever. How much will you pay for a share of Horizon Inc. today? Assume required return is 18% compounded annually

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