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Problem 9.14 (Nonconstant Growth) Question 17 of 20 Check My Work (3 remaining) eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to
Problem 9.14 (Nonconstant Growth) Question 17 of 20 Check My Work (3 remaining) eBook Problem Walk-Through 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 $2.00 coming 3 years from today. The dividend should grow rapidly - at a rate of 28% per year - during Years 4 and 5, but after Year 5, growth should be a constant 8% per year. If the required retum on Computech is 15%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent. $
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