Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the...
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| Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 8 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $7 per share 9 years from today and will increase the dividend by 4 percent per year thereafter. |
| If the required return on this stock is 7 percent, what is the current share price? |
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