X AS - ? el 5 X Calculating stock price - Excel FORMULAS DATA...

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X AS - ? el 5 X Calculating stock price - Excel FORMULAS DATA REVIEW FILE HOME INSERT PAGE LAYOUT VIEW Sign In Calibri 11 ib | A % W Paste BIU- Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 X fax A B D E F G H I J K 1 2 3 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 pay a $14 per share dividend 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? 4 5 6 $ 7 Future dividend Years until first dividend Dividend growth rate Required return 14.00 10 3.9% 12.5% 8 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations. 13 14 Stock price in 9 years 15 16 Stock price today 17 18 19

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