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Metallica Bearings, Inc., Is a young start-up company. No dividends will be paid on the stock over the next 13 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 13 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per share dividend in 14 years and will increase the dividend by 7 percent per year thereafter. Required: If the required return on this stock is 15 percent, what is the current share price? (Do not round your Intermediate calculations.) O $25.60 $23.16 $25.11 O $21.20 $24.38
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