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Business, 13.07.2020 22:01 flowerrbabie
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 dividend of $14 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.
Required:
If the required return on this stock is 14 percent, what is the current share price?
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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over t...
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