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.