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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 10 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 10 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $12.25 per share 11 years from today and will increase the dividend by 5.25 percent per year thereafter. The required return on the stock is 13.25 percent.
Round to 2 decimal places
What is the price of the stock 10 years from today?
What is the current share price
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