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2. The business of Microtech Corporation is growing rapidly, which is reflected by its current dividend growth rate of 35% per year. The dividend growth
2. The business of Microtech Corporation is growing rapidly, which is reflected by its current dividend growth rate of 35% per year. The dividend growth rate is expected to last for another three years, after which the growth rate will fall to a long-term growth rate of 6% per year. If Microtech just paid a dividend of $1.25 per share and your required rate of return is 15%, what should be the stock value of Microtech per share? (5 points)
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