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Computer Corporation is expanding rapidly and currently needs to retain of its earnings hence does not pay dividends. However, investors expect to begin dividends, beginning
Computer Corporation is expanding rapidly and currently needs to retain of its earnings hence does not pay dividends. However, investors expect to begin dividends, beginning with a dividend or $2.00 coming 3 years from today. The dividend should grow rapidly at a rate of 45% per year during Years 4 and 5, but after Year 5, Growth should be a constant 6% per year if the required return on is 14%, what is the value or the stock today? Round your answer to the nearest cent Do not round your intermediate calculations
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