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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 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 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $11 per share 8 years from today and will Increase the dividend by 7 percent per year thereafter. If the required return on this stock Is 13 percent, what is the current share price? Multiple Choice $68.96 $77.93 $81.82 $80.27 $74.03
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