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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
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 dividend of $16.50 per share 9 years from todayand will increase the dividend by 5.75 percent per year thereafter. |
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If the required return on this stock is 13.75 percent, what is the current share price?(Do not round intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).) |
Current share price | $ |
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