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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 14 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 14 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $11 per share 15 years from today and will increase the dividend by 3 percent per year thereafter. If the required return on this stock is 8 percent, what is the current share price? Multiple Choice $77.15 $78.65 $74.90 $69.35 $71.16
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