Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a $12.70 per share dividend in year 9 and will increase the dividend by 6.00 percent per year thereafter.

Required:

If the required return on this stock is 12.00 percent, what is the current share price? (Select rounded answers as directed, but do not use the rounded numbers in intermediate calculations.)

multiple choice

$94.04

$76.94

$85.49

$211.67

$76.33