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Finance3000 is a young start-up company. It will not pay any dividends on its stock over the next nine years because it plans to use
"Finance3000" is a young start-up company. It will not pay any dividends on its stock over the next nine years because it plans to use retained earnings on expanding its business. "Finance3000" will pay a $10 per share dividend 10 years from today. After that the company will increase the dividend by 6 percent per year, in perpetuity. The required return on this stock is 11 percent. Calculate the value of one share of "Finance3000"'s stock.
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