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 $14 per share dividend in 10 years and will increase the dividend by 3.9 percent per year thereafter. if the required return on this stock is 12.5 percent, what is the current share price?

ANSWER MUST BE IN FORMULA FORM!!!

Saved Thapter 07 - Equity Markets and Stock Valuation 6 7 - X 6 Sign in FILE 2 * . . HOME Arad B IU Calculating stock price - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW . 12 AA = % D D . . . AAlignment Number Conditional Formatas Cell - Formatting - Table - Styles Font Styles Cells Editing Clipboard T X Metallica Bearings, Inc., is a young start-up company. No dividends will be paid D E F G H 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 $14 per share dividend 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? 14.00 Future dividend Years until first dividend Dividend growth rate Required return 3.9% 12.5% Complete the following analysis. Do not hard code values in your calculations. Stock price in 9 years Stock price today