Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock...

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Metallica Bearings, Inc., is a young start-up company. Nodividends will be paid on the stock over the next 10 years becausethe firm needs to plow back its earnings to fuel growth. Thecompany will pay a dividend of $10 per share 11 years from todayand will increase the dividend by 7 percent per yearthereafter.
If the required return on this stock is 14 percent, what is thecurrent share price?
Lohn Corporation is expected to pay the following dividends overthe next four years: $10, $7, $6, and $2. Afterward, the companypledges to maintain a constant 6 percent growth rate in dividendsforever.
If the required return on the stock is 12 percent, what is thecurrent share price?
Synovec Co. is growing quickly. Dividends are expected to growat a rate of 23 percent for the next 3 years, with the growth ratefalling off to a constant 6 percent thereafter.
If the required return is 11 percent and the company just paid a$1.30 dividend. what is the current share price?

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Let the dividend for year n be denoted by Dn Let required rate of return be r Let Growth rate be g 1 Given D11 10 g 7 and r 14 According to See Answer

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Metallica Bearings, Inc., is a young start-up company. Nodividends will be paid on the stock over the next 10 years becausethe firm needs to plow back its earnings to fuel growth. Thecompany will pay a dividend of $10 per share 11 years from todayand will increase the dividend by 7 percent per yearthereafter.If the required return on this stock is 14 percent, what is thecurrent share price?Lohn Corporation is expected to pay the following dividends overthe next four years: $10, $7, $6, and $2. Afterward, the companypledges to maintain a constant 6 percent growth rate in dividendsforever.If the required return on the stock is 12 percent, what is thecurrent share price?Synovec Co. is growing quickly. Dividends are expected to growat a rate of 23 percent for the next 3 years, with the growth ratefalling off to a constant 6 percent thereafter.If the required return is 11 percent and the company just paid a$1.30 dividend. what is the current share price?