Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over

Question:

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 $10 per share in 10 years and will increase the by 5 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price?
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...