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 dividend of $14 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.

Required:
If the required return on this stock is 14 percent, what is the current share price?

Answer 1

we have to divide the money

Step-by-step explanation:

as it is written its