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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 15 years because the firm needs

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 15 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $8 per share 16 years from today and will increase the dividend by 5 percent per year thereafter.

If the required return on this stock is 12 percent, what is the current share price? image text in transcribed

Multiple Choice $20.88 $21.92 $19.84 $21.51 $18.64

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