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Computech Corporation is expanding rapidiy and currently needs to retain al of its earnings; hence, in does not pay dividends. Howevec, investors expect Computech to
Computech Corporation is expanding rapidiy and currently needs to retain al of its earnings; hence, in does not pay dividends. Howevec, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from teday, The dividend sheuld grew rapidiy - at a rate of 24$ per year - during Years 4 and 5 , but after Year $, growth thould be a constant 7W per year. If the required return on Computech is 13%, what is the value of the stock todov? Do not round intermediate calculations. Alound your anuwer to the nearest cent
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