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NONCONSTANT GROWTH Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect
NONCONSTANT GROWTH 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 $1.75 coming 3 years from today. The dividend should grow rap dly at a rate of 41% per year during Years 4 and 5: but after Year growth Should be a constant 9% per year. If the required retu on Computech s 15% what s the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations
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