What is the value of the stock today

Assignment Help Financial Management

Reference no: EM131597297

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 exist1.50 coming 3 years from today. The dividend should grow rapidly, at a rate of 27% per year during years 4 and 5: but after year 5, growth should be a constant 4% per year. If the required return on Computech is 16%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations.

Reference no: EM131597297

Questions Cloud

Charge different interest rates on their loans : F1, F2 and F3 are three financial services companies that charge different interest rates on their loans.

In order to accumulate enough money for down payment : In order to accumulate enough money for a down payment on a? house, a couple deposits $555 per month into an account paying 6% compounded monthly.

Income from mining of mineral deposits usually decreases : Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract.

Develop the marketing mix strategies : Assess the marketing philosophy of Commercial Bank of Ethiopia. Which of the philosophies discussed, do you think, is adopted by the bank.

What is the value of the stock today : Computech Corporation is expanding rapidly and currently needs to retain all of its earnings. what is the value of the stock today?

Wap that prompts the user to enter alphabets : Write a program that prompts the user to enter a 10 alphabets (A-Z) and converts it to numbers using the following mapping.

List of project methodologies and processes : Define what a methodology is and the role it serves in project management.

Power point presentation with presenter : Create a 5 slide Power Point presentation with presenter's notes in which you focus on Ways to reduce waste & inefficiency in healthcare

Reduce employee stress : What types of things can an employer do to reduce employee stress? What other types of stress relievers would you recommend to management?

User Account

All Pages