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Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay div
Posted: Wed Jul 06, 2022 6:27 pm
by answerhappygod
- Computech Corporation Is Expanding Rapidly And Currently Needs To Retain All Of Its Earnings Hence It Does Not Pay Div 1 (59.29 KiB) Viewed 11 times
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 $0.75 coming 3 years from today. The dividend should grow rapidly-at a rate of 31% per year- during Years 4 and 5, but after Year 5, growth should be a constant 7% per year. If the required return on Computech is 12%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent. tA $