Logan Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Logan to begin paying dividends, beginning with a dividend of $2.50 coming 5 years from today. The dividend should grow rapidly-at a rate of 30% per year-during Years 6 through 9; but after Year 9, growth should be a constant 10% per year. The required return on Logan's stock is 18% What is the value of the stock today?

Logan Corporation is expanding rapidly and currently needs to retain all of its eamings: hence, it does not pay dividends. However, investors expect Logan to begin paying dividends, beginning with a dividend of \\( \\$ 2.50 \\) coming 5 years from today. The dividend should grow rapidly-at a rate of \30 per year-during Years 6 through 9; but after Year 9. growth should be a constant \10 per year. The required return on Logan's stock is \18 What is the value of the stock today