What is the current share price

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Question - Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 14 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $8 per share 15 years from today and will increase the dividend by 3 percent per year thereafter. If the required return on this stock is 8 percent, what is the current share price?

Reference no: EM133017452

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