Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next ten years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $13.50 per share 11 years from today and will increase the dividend by 5.25 percent per year thereafter. The required return on the stock is 13.25 percent.1. What is the price of the stock 10 years from today?2. What is the current share price?

1. The price of the stock 10 years from today is $150 per share.

2. The current share price is $43.22 per share.

Explanation:

1. What is the price of the stock 10 years from today?

To calculate this, the dividend growth model formula is used as follows:

P = D1 / (r - g) (1)

Where,

P = Stock price 10 years from today = ?

D1 = Dividend 11 years from today = $13.50

r = required return = 13.25%. or 0.1325

g = dividend growth rate = 5.25%, or 0.0525

Substituting the values into equation (1), we have:

P = $13.50 / (0.1325 - 0.0425)

P = $150

Therefore, the price of the stock 10 years from today is $150 per share.

2. What is the current share price?

This can be calculated using the present value formula as follows:

Current share price = P / (1 + r)^Number of years = $150 / (1 + 0.1325)^10 = $43.22

Therefore, the current share price is $43.22 per share.

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ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'