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Computech Corporation is expanding rapidiy and currentiy needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Cornputech to
Computech Corporation is expanding rapidiy and currentiy needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Cornputech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidily - at a rate of 50% per year - daring Years 4 and 5 , but after Vear 5. growth should be a constant 6% per year. If the required return on Computech is 15%, what is the value of the stock today? Do not round intermediate calculations. iound your answer to the nearest cent
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