Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does
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Question:
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 $ coming years from today. The dividend should grow rapidly at a rate of per year during Years and ; but after Year growth should be a constant per year. If the required return on Computech is what is the value of the stock today?
The stock price is today equal to
Round your answer to the nearest cent. Do not round your intermediate calculations.
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