Question: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.60 coming3years from today. The dividend should grow rapidlyat a rate of 60% per yearduring Years4and5. After Year5, the company should grow at a constant rate of6% per year. If the required return on the stock is 10%, what is the value of the stock today?

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