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Metallica Bearings inc. is a young start-up company. No dividends will be paid on the stock over the next 9 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 9 years, because the firm needs to plow back in earnings to fuel growh. The company will pay a dividend of $17.50 per share in 10years and will increase the dividen by 5.5 % per year thereafter. If the required return on this stock is 12 %, what is the current share price?
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