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# Video Excel Online Structured Activity: Nonconstant growth Computech Corporation is expanding rapidly and currently...

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# Video Excel Online Structured Activity: Nonconstant growth 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 49% per year during Years 4 and 5; but after Year 5, growth should be a constant 10% per year. The data has been collected in the Microsoft Excel Online fie below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet If the required return on Computech is 13%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Check My Work Reset Problem 0 33 Owend. D. Sormal growth Normal growth rate, $125 49.00 10.00 13.00 40.00% 10.00% Didade 10 11 Cashflows to co choden DP of cushows tomon holders 1 Stock Price. P. 15 16 Amalvey, ang EX NPV anchon 1 Stock Price IB 19 20 Fom. 21 22 23 Didende 24 F 25 Cash flows to common stockholders 26 23 PV of cash rows to common stockholm 28 Stock Price 49.00% 4900 10.00 $12000 SNA WA NA 0 ANA WA TNA NA SNA NA

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