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

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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 $0.50 coming 3 years from today. Thedividend should grow rapidly-at a rate of 50% per year-during Years4 and 5; but after Year 5, growth should be a constant 4% per year.If the required return on Computech is 14%, what is the value ofthe stock today? Round your answer to the nearest cent. Do notround your intermediate calculations.

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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 $0.50 coming 3 years from today. Thedividend should grow rapidly-at a rate of 50% per year-during Years4 and 5; but after Year 5, growth should be a constant 4% per year.If the required return on Computech is 14%, what is the value ofthe stock today? Round your answer to the nearest cent. Do notround your intermediate calculations.