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Computech Corporation is expanding rapidly and currently needs to retain alf of its earnings; hence, it does not pay dividends. However, investors expect Computech begin
Computech Corporation is expanding rapidly and currently needs to retain alf of its earnings; hence, it does not pay dividends. However, investors expect Computech begin paying dividends, beginning with a dividend of $1.75 coming 3 vears from todxy, The dividend should grow rapidly - at a rate of 41% per year - during Years 4 and 5; but after Year 5, orowth should be a constant 9% 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. Open spreadshent Wh the requred returt on Computech is 16%, what is the value of the stock today? Round vour answer to the nearest cent. Do not round your intermediate calculations
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