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Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on the
stock over the next 10 years because the firm needs to plow back its earnings to fuel growth. The
company will then pay a dividend of $1475 per share 11 years from today and Will increase the
dividend by 525 percent per yeac, thereafter If the required return on this stock is 13.25 percent,
what is the current share price? Note: Do not round intermediate calculations ond round your
answer to 2 decimal ploces, e.9. 32.16 .

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Metallica Bearings, Incorporated, is a young startup company. No divi.pdf

  • 1. Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on the stock over the next 10 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $1475 per share 11 years from today and Will increase the dividend by 525 percent per yeac, thereafter If the required return on this stock is 13.25 percent, what is the current share price? Note: Do not round intermediate calculations ond round your answer to 2 decimal ploces, e.9. 32.16 .