As a financial analyst, you are estimating the value of a stock, ABC. You expect the stock do not pay any dividend for the next five years, and then start to pay $10 dividend per year for the next 20 years. After that, the stock is expected to stop paying dividend forever and the companys assets will be worth nothing. If the required rate of return of the stock is 10%, what is your best estimate of the value of the stock today?

A.

$52.86

B.

$85.14

C.

$181.81

D.

$200.00

E.

None of the above