A company plans to retain and reinvest all of their earnings for the next 25 years. Investors believe that, beginning in year 26, the firm will begin to pay a dividend of $7.00 per share. The dividend will increase at a 5% rate annually forever. Given a required rate of return of 10%, the stock should sell today for _______

Group of answer choices

$11.75

$12.42

$12.92

$10.64