Q4.Nonconstant Growth.Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price?

Current Dividend	D0	?
Dividend for year 1-9	D1 ... D9	?
Dividend for year 10	D10	?	<- D0 * (1+g1)10
Dividend growth rate, after year 10	g	?
Discount rate	R	?	Required rate of return
Price at end of year 9	P9	?	<- D10 / (r-g)