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?