Question: Problem 7 - 1 5 Nonconstant Growth [ LO 1 ] Metallica Bearings, Incorporated, is a young startup company. No dividends will be paid on

Problem 7-15 Nonconstant Growth [LO 1]
Metallica Bearings, Incorporated, is a young startup company. No dividends will
be paid on the stock over the next 10 years because the firm needs to plow back
its earnings to fuel growth. The company will then pay a dividend of $12.25 per
share 11 years from today and will increase the dividend by 5.25 percent per year,
thereafter. If the required return on this stock is 13.25 percent, what is the current
share price?
Note: Do not round intermediate calculations and round your answer to 2
decimal places, e.g.,32.16.
Current share price
i keep getting $38.96 but it says it is incorrect.
Problem 7-15 Nonconstant Growth [LO 1] Metallica Bearings, Incorporated, is a

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