Question $25$

Firm X just paid a dividend of $$1.$ Dividends are expected to grow $25\%$

this year, with the dividend growth rate in future years decreasing by

$5\%$ per year until the growth rate hits a steady state of $5\frac{\%}{?}$ year. If the

required return on the stock is $14\frac{\%}{?}$ year, what is the current stock price

$($PO$)?$