Question: Yost Corp. does not currently pay any dividends. However, the firm expects to begin paying dividends in 2 5 years with a $ 5 payout

Yost Corp. does not currently pay any dividends.
However, the firm expects to begin paying
dividends in 25 years with a $5 payout per share,
after which dividends will grow at 6 percent forever.
If the market requires a 16 percent rate of return
on stocks of this risk, what is the current stock
price of Yost Corp.?

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