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 12 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $12 per share 13 years from today and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 16 percent, what is the current share price? Multiple Choice $24.01 $21.78 $25.27 Multiple Choice $24.01 $2178 $25.27 $26.03 $26.53
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