#8

Computech Corporation is expanding rapidiy and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1,00 coming 3 years from today, The dividend should grow rapidly = at a rate of 26% per year - during Years 4 and 5 , but after Year 5. growth should be a constant 8\% per year. If the required retum on Computech is 16%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent