Netscrape Communications does not currently pay a dividend You expect the company to begin paying a $6 per share dividend in 10 years, and you expect dividends to grow perpetually at 5 5 percent per year thereafter If the discount rate is 15 percent, how much is the stock currently worth ...

Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $6

Question:

Netscrape Communications does not currently pay a You expect the company to begin paying a $6 per share in 10 years, and you expect dividends to grow perpetually at 5.5 percent per year thereafter. If the is 15 percent, how much is the stock currently worth?

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...