Business, 17.12.2019 19:31 LoLGuy133

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 $1.25 coming 3 years from today. the dividend should grow rapidly - at a rate of 21% per year - during years 4 and 5, but after year 5, growth should be a constant 8% per year.
1. if the required return on computech is 18%, what is the value of the stock today?

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Computech corporation is expanding rapidly and currently needs to retain all of its earnings; hence...

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