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Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next 12 years because the firm needs
Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next 12 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $7 per share 13 years from today and will increase the dividend by 7 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price? Multiple Choice $21.79 $19.72 $21.38 $18.21 $20.76
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