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Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on the stock over the next 7 years because the firm needs
Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $14.25 per share 8 years from today and will increase the dividend by 6 percent per year, thereafter. If the required return on this stock is 14 percent, what is the current share price?
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