- Ebook Problem Walk Through Computech Corporation Is Expanding Rapidly And Currently Needs To Retain All Of Its Earrings 1 (10.75 KiB) Viewed 37 times
eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to retain all of its earrings;
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eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to retain all of its earrings;
eBook Problem Walk-Through Computech Corporation is expanding rapidly and currently needs to retain all of its earrings; hence, it does not pay dividends. However, investors expect Computeck to begin paying vidends, beginning with a dividend of $1.00 coming 3 years from today. The dividend should grow rapidly-at a rate of 49% per year-during Years 4 and 5, but after year 3. growth should be a constant 10% per year. If the required return on Computech is 13% what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent