metallica bearing incorported is a startup company. no dividends will be paid onthe stock over 10 years. The company will then pay a divident of $14.75 pershare 11 years from today and will increase the dividend by 5.25% per year. ifthe return on this stock is 13.25% what is the current share sale

b) Calculation of bond price now PV=FV/(1+𝑟)𝑛 =$184.375/(1+0.1325)^10 =184.375/3.47042 =$53.13…

Answered: metallica bearing incorported is a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 8P

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