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metallica bearings, inc., is a young start-up company. no dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. the company will pay a dividend of $10 per share exactly 10 years from today and will increase the dividend by 6 percent per year thereafter. if the required return on this stock is 10 percent, what is the current share price?

Respuesta :

The corporation would then pay a payout of $10 for each share in 10 years and will boost the dividend by 6% per year after that.

What exactly do you say by "share"?

Shares are equity ownership units in a corporation. Shares occur as a capital product for some companies, supplying for an equitable split of any residue left profits, if any are proclaimed, in the dividend form. Stockholders of a shares that does not pay dividends are not entitled to a profit distribution.

What are the various kinds of shares inside a limited company?

  • Ordinary stock.
  • Non-voting stock.
  • Preferences are distributed.
  • Shares that are redeemable.

To know more about Shares visit:

https://brainly.com/question/28392295

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