Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over
Fantastic news! We've Found the answer you've been seeking!
Question:
- Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 12 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $9 per share 13 years from today and will increase the dividend by 7 percent per year thereafter.
If the required return on this stock is 11 percent, what is the current share price?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date: