19) ant wth cion intrinsic per share! Simpkins Corporation does not pay any dividends because it is expanding rapidlyand needs to retain all of its earnings. However, investors expect Simpkins to begin paying divi.. dends, with the first dividend of $0.50 coming 3 years from today. The dividend should grow rapidly-at a rate of 80% per year-during Years 4 and 5. After Year 5, the com- pany should grow at a constant rate of 7% per year. If the required return on the stock is 16%, what is the value of the stock today? (Assume the market is in equilibrium with the required return equal to the expected return.) no