Bucknell, Inc., recently paid a dividend of $2.10. Management forecasts dividend growth of 6 percent per year

Question:

Bucknell, Inc., recently paid a dividend of $2.10. Management forecasts dividend growth of 6 percent per year for the foreseeable future. What is the value of the stock today with a discount rate of 13 percent?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...