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Metallica Bearings, Incorporated, 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, Incorporated, 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 $7 per share 15 years from today and will increase the dividend by 4 percent per year thereafter. If the required return on this stock is 10 percent, what is the current share price? Multiple Choice $32.26 $27.93 $29.19 $30.72 $31.64
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