Metallica Bearings, Inc., isla young start-up company. No dividends will be paid on the stock over the next nine years b

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Metallica Bearings Inc Isla Young Start Up Company No Dividends Will Be Paid On The Stock Over The Next Nine Years B 1 (30.46 KiB) Viewed 17 times

Metallica Bearings, Inc., isla 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 $10 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 11 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price