Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 9 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $13 per share dividend in 10 years and will increase the dividend by 3 percent per year thereafter. |
Required: |
If the required return on this stock is 6 percent, what is the current share price? (Do not round your intermediate calculations.) |
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