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with step and formual 10-6 Valuing Nonconstant Growth Stocks Problem 10-14 nt growth Microtech Corporation is expanding rapidly and currently needs to retain all of
with step and formual 10-6 Valuing Nonconstant Growth Stocks Problem 10-14 nt growth Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Microtech to begin pay ng dividends begin ing with a dividend or sso coning 3 years from today. The dividend should grow rapidly-at a rate of 41% per year-during Years 4 and 5; but after Year S growth should be a constant 6% per year r the required return on Mic tech is 17% what is the value of the stock today? Round your answer to the nearest cent
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