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 $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 32% per year - during Years 4 and 5; but after Year 5, growth should be a constant 10% 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.

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

Nonconstant growth Year 3 Dividend, D. Supernormal growth rate, 9. Normal growth rate, Required return 51.25 32.00% 10.00% 15.00% 32.00% 32.00% 10.00% 0 5 3 $1125 Dividends P. Cash flows to common stockholders PV of cash flows to common stockholders Stock Price. Po Alternatively, using Excel NPV function: Stock Price, P Formulas 32.00% 10.00% 0 2 1 0 3 $1127300 32.00% 5 ENJA ENIA ENA Dividends P. Cash flows to common stockholders SNA 0 ENIA ENA ENA ENIA ENA ENIA ENIA ENIA PV of cash flows to common stockholders Stock Price, P SNA Alternatively, using Excel NPV function: Stock Price, P SNA