Question: Please answer the question below. Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

Please answer the question below.
Please answer the question below. Microtech Corporation is expanding rapidly and currently

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 paying dividends, beginning with a dividend of $2.90 coming 3 years from today. The dividend should grow rapidly-at a rate of 29% per year-during Years 4 and 5; but after Year 5, growth should be a constant 6.8% per year. If the required return on Microtech is 10.90%, what is the value of the stock today? $125.39 $82.42 $130.57 $101.36

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