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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 4 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 4 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $9 per share starting 5 years from today and will then increase the dividend by 6 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price? $68.61 $63.28 O $69.94 $58.43 $66.61
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