Metallica bearings inc is a young start-up company no, Ask an Expert

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a $14.25 per share dividend in year 8 and will increase the dividend by 6.00 percent per year thereafter.

Required:

If the required return on this stock is 14.00 percent, what is the current share price?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92095666

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