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 $1.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 26% 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.

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. PLEASE SHOW FORMULAS IN EXCEL!

Nonconstant growth
Year 3 Dividend, D3	$1.50
Supernormal growth rate, gs	26.00%
Normal growth rate, gn	10.00%
Required return, rs	15.00%
Dividends
P5
Cash flows to common stockholders
PV of cash flows to common stockholders
Stock Price, P0
Alternatively, using Excel NPV function:
Stock Price, P0
Formulas
Dividends
P5
Cash flows to common stockholders
PV of cash flows to common stockholders
Stock Price, P0
Alternatively, using Excel NPV function:
Stock Price, P0