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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
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 three years from today. The difference should grow rapidly at a rate of 41% per year during years four and five, but after year five, growth should be a constant 9% per year. The required return of Computech is 15% what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent
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