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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 earnings to fuel growth. The company will pay a dividend of $17.50 per share in 10 years and increase the dividend by 5.5% per year thereafter. If the required rate of return is 12 %, what is the stock price today?
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