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01 15. Nonconstant Growth Metallica Bearings, Inc., is a young startup company- No dividends will be paid on the stock over the next nine
01 15. Nonconstant Growth Metallica Bearings, Inc., is a young startup 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 then pay a dividend of $14 per share 10 years from today and will increase the dividend by 3.9 percent per year, thereafter. If the required return on this stock is 11.5 percent, what is the current share price?
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