Metallica bearings inc is a young start-up company no


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 earnings to fuel growth. The company will then pay a dividend of $14.50 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.

If the required return on this stock is 13 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            $

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Financial Management: Metallica bearings inc is a young start-up company no
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