What is the current share price

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Reference no: EM131012114

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next seven years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15.50 per share 8 years from today and will increase the dividend by 6.00 percent per year thereafter.

Required:

If the required return on this stock is 14.00 percent, what is the current share price?

Reference no: EM131012114

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