Metallica bearings, inc., is a young start up company. No dividends will be paid on the stock
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 14 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $13 per share dividend in15 years and will increase the dividend by 7 percent per year thereafter. Required: if the required return on this stock is 15 percent, what is the current share price?
Posted Date: