City: Nonconstant growth Video Excel Online Structured Activity: Nonconstant growth Computech Corporation is expanding rapidly 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 $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 48% per year - during Years 4 and 5; but after Year 5, growth should be a constant 5% per year. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet If the required return on Computech is 15%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Check My Work Reset Problem File Home Insert Draw Page Layout Formulas Data Review View Help Editing V 12 Arial V 10 V B v Av. abe Merge General J5 fx B D E F G $0.75 48.00% 5.00% 15.00% 48.00% 48.00% 5 0 5.00% 6 1 0 4 2. 0 3 $0.75 1 Nonconstant growth 2 3 Year 3 Dividend, D3 4 Supernormal growth rate, gs 5 Normal growth rate, In 6 Required return, is 7 8 9 Dividends 10 PS 11 Cash flows to common stockholders 12 13 PV of cash flows to common stockholders 14 Stock Price, Po 15 16 Alternatively, using Excel NPV function: 17 Stock Price, Po 18 19 20 Formulas 21 22 23 Dividends 0 0 + 48.00% 0 1 0 2. 0 3 $0.7500 48.00% 5 N/A #N/A #N/A 5.00% 6. N/A #N/A 24 P5 0 0 #N/A #N/A #N/A #N/A N/A N/A #N/A #N/A 25 Cash flows to common stockholders 26 2 PV of cash flows to common stockholders 28 Stock Price, Po 20 30 Alternatively, using Excel NPV function 31 Stock Price, Po 32 23 #N/A