Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 13 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $11 per share 14 years from today and will increase the dividend by 5 percent per year thereafter.

If the required return on this stock is 10 percent, what is the current share price?

Multiple Choice

• $57.93

• $60.54

• $66.91

• $63.73

• $65.64