Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over
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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 $7 per share dividend in 10 years and will increase the dividend by 6 percent per year, thereafter. If the required return on this stock is 14 percent, what is the current share price?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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