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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will then
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39 votes
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15.75 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.

If the required return on this stock is 13 percent, what is the current share price?

User OverToasty
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1 Answer

15 votes
15 votes

Answer 45k ...

Step-by-step explanation:

User Kris Jordan
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