A stock that you think will go for $81 per share in three years and will pay $3.00 in dividends annually for that time period, providing your needed return is 10%, is worth $68.32.
N = 3
I = 10
PV = ? = $68.32
PMT = 3
FV = 81
A stock, usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing dividends company. Shares, also known as units of stock, entitle its owners to a share of the company's assets and income in proportion to the number of shares they possess.
Most individual investors' portfolios are built on stocks, which are mostly bought and sold on stock exchanges. Government standards designed dividends to shield investors from dishonest tactics must be followed during stock trades.
In order to raise money to run their operations, corporations issue stock, and the holder of that shares, known as a shareholder, may be entitled to some of the company's assets and earnings.
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