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Computech Corporation is expanding rapidir and currentir needs to retain all of its earnings; hence, it does not par dividends. However, investors expect Computech to
Computech Corporation is expanding rapidir and currentir needs to retain all of its earnings; hence, it does not par dividends. However, investors expect Computech to beph paping dividends, beginning with a dividend ef $1.50 coming 3 vears frem today, The evidend should prow rapidly-at a rate of 32% per year-during Years 4 and 5 ; bet ater rear 5; grawth should be a constant 6% per year. If the required return on Comoutech is 16%, what is the value of the stock bediv? Round your antwer to tive nearest cant. Da not round your intermediate calculations
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