Calculate the current share price


Metallica Bearings, Inc. is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earning to fuel growth. The company will pay a $10 per share dividend in 10 years and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 11 percent, what is the current share price?

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Finance Basics: Calculate the current share price
Reference No:- TGS0723518

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