What is the current share price

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 8 years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $14.00 per share 9 years from today and will increase the dividend by 5.75 percent per year thereafter. The required return on the stock is 13.75 percent.

What is the price of the stock 8 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Price in 8 years            $

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            $

Reference no: EM131311788

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