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Metallica Bearings, Inc is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to use its earnings to feed growth. The company is then expected to pay a $15 dividend (10 years from today), which will grow by 5% per year thereafter. If the required rate of return for the stock is 14%, what is the current price?

Financial Management, Finance

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