What is current share price

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Reference no: EM131851342

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 then pay a dividend of $14.50 per share 10 years from today and will increase the dividend by 5 percent per year thereafter. The required return on the stock is 13 percent.

What is the price of the stock 9 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Price in 9 years $

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 $

Reference no: EM131851342

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