Question $11(1$ point$)$

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 $$3\mathrm{.}80$ coming $3$ years from today. The dividend should grow rapidly$-$at a rate of $38\%$ per year$-$during Years $4$ and $5$ ; but after Year $5,$ growth should be a constant $7\mathrm{.}7\%$ per year. If the required return on Microtech is $11\mathrm{.}80\%,$ what is the value of the stock today?

$$197\mathrm{.}33$

$$119\mathrm{.}05$

$$148\mathrm{.}81$

$$190\mathrm{.}10$