Nonconstant Growth Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the
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Nonconstant Growth 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 an $8 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 13 percent, what is the current share price? LO.1
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