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Business, 08.07.2019 22:40 tink921

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 $2.00 coming 3 years from today. the dividend should grow rapidly - at a rate of 19% per year - during years 4 and 5, but after year 5, growth should be a constant 10% per year. if the required return on computech is 16%, what is the value of the stock today? do not round intermediate calculations. round your answer to the nearest cent.

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