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28 Sep 2019
Answer is 34.17 Not sure how to get this answer.
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 $10 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price?
Answer is 34.17 Not sure how to get this answer.
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 $10 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 14 percent, what is the current share price?
rajudonno123Lv2
13 Feb 2023
Jamar FerryLv2
28 Sep 2019
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