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on answer the blue and green excel boxes Excel Online Structured Activity: Nonconstant growth Computech Corporation is expanding rapidly and currently needs to retain all

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on answer the blue and green excel boxes
Excel Online Structured Activity: 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 $1.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 21% per year during Years 4 and 5; but after Year 5, growth should be a constant 5% 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. TH X Open spreadsheet If the required return on Computech is 12%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations 10 D F G H $1.50 21.00% 5.00% 12.00% 21.00% 21.00% 5 5.00% 6 0 1 0 0 $1.50 0 0 1 Nonconstant growth 2 3 Year 3 Dividend, D 4 Supernormal growth rate, 5 Normal growth rate, 6 Required retum, 7 B Dividends 10 P 11 Cash flows to common stockholders 12 13 PV of cash flows to common stockholders 14 Stock Price,P 15 16 Alternatively, using Excel NPV function 17 Stock Price,P 18 19 20 Formulas 21 22 23 Dividends 24 PS 25 Cash flows to common stockholders 26 27 PV of cash flows to common stockholders 2 Stock Price,P Sheet1 Cation Mode: Auto WorkbookStatic 5.00 21.00% 4 1 0 2 0 3 $1,5000 21005 5 SNA NA 0 0 INA NA SNA SNIA NA

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