10 7 points Skipped eBook Print Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.75 per share 8 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 14 percent, 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 References

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the
stock over the next 7 years because the firm needs to plow back its earnings to fuel
growth. The company will then pay a dividend of $16.75 per share 8 years from
today and will increase the dividend by 6 percent per year thereafter.
If the required return on this stock is 14 percent, 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
References
Transcribed Image Text:10 7 points Skipped eBook Print Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.75 per share 8 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 14 percent, 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 References
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