17)

Computech Corporation is expanding rapidly and currently needsto 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. Thedividend should grow rapidly - at a rate of 50% per year - duringYears 4 and 5, but after Year 5, growth should be a constant 8% peryear. If the required return on Computech is 18%, what is the valueof the stock today? Do not round intermediate calculations. Roundyour answer to the nearest cent.

18)

Dantzler Corporation is a fast-growing supplier of officeproducts. Analysts project the following free cash flows (FCFs)during the next 3 years, after which FCF is expected to grow at aconstant 7% rate. Dantzler's WACC is 13%.

Year	0		1		2		3
	.......	.......	.......	.......	.......	.......	.......	.......
	.......	.......	.......	.......	.......	.......	.......	......
FCF ($ millions)			- $11		$19		$49

1. What is Dantzler's horizon, or continuing, value? (Hint: Findthe value of all free cash flows beyond Year 3 discounted back toYear 3.) Enter your answer in millions. For example, an answer of$13,550,000 should be entered as 13.55. Do not round intermediatecalculations. Round your answer to two decimal places.
   $   million
   
2. What is the firm's market value today? Assume that Dantzler haszero non-operating assets. Enter your answer in millions. Forexample, an answer of $13,550,000 should be entered as 13.55. Donot round intermediate calculations. Round your answer to twodecimal places.
   $   million
   
3. Suppose Dantzler has $141.40 million of debt and 23 millionshares of stock outstanding. What is your estimate of the currentprice per share? Write out your answer completely. For example,0.00025 million should be entered as 250. Do not round intermediatecalculations. Round your answer to the nearest cent.
   $