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 45% per year-during Years 4 and 5, but after Year 5, growth should be a constant 9% per year. If the required return on Computech is 16%, what is the value of the stock today? Do not round Intermediate calculations. Round your answer to the nearest cent.

Holt Enterprises recently paid a dividend, D0, of $2.00. It expects to have nonconstant growth of 21% for 2 years followed by a constant rate of 5% thereafter. The firm's required return is 14%. How far away is the horizon date? The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. The terminal, or horizon, date is infinity since common stocks do not have a maturity date. The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. What is the firm's horizon, or continuing, value? Do not round intermediate calculations. Round your answer to the nearest cent. $   What is the firm's intrinsic value today, ? Do…

Company XYZ does not currently pay a dividend. However, their earnings have been growing at a very high rate. Thus, they are expected to begin paying a dividend, starting 7 years from today. Expectations are that the first dividend will be $ 6.9 per share. The dividend is then expected to grow at 20 % per year for 6 years, and at the end of that super-normal growth period, the stock will enter a slower growth perpetuity phase of 5 % per year. The required return on Agilent stock is 13 %. What should be their current stock price? (Please make sure to not do any intermediate rounding and keep at least 6 decimal points throughout solving this problem. Round your final answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)

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 $1.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 50% per year - during Years 4 and 5, but after Year 5, growth should be a constant 6% per year. If the required return on Computech is 18%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

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 $1.75 coming 3 years from today. The dividend should grow rapidly—at a rate of 28% 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 18%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

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 $1.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 35% per year - during Years 4 and 5, but after Year 5, growth should be a constant 10% per year. If the required return on Computech is 13%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

Yam-Hash Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of 5 coming 3 years from today. The dividend should grow rapidly—at a rate of 50% per year—during Years 4 and 5. After Year 5, the company should grow at a constant rate of 8% per year. If the required return on the stock is 15%, what is the value of the stock today?

Emerald City Corporation (ECC) is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect ECC to begin paying a dividend of $2.00 three years from today. The dividend should grow rapidly: at a rate of 30% per year during years 4 and 5. After Year 5, growth should be a constant 5% per year forever. If the required return on ECC is 9%, what is the value of the stock today?

Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $3.58 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment; this is expected to continue forever. What do you estimate the firm's current stock price to be? (Hint: its next dividend is due in one year.) C The current stock price will be $ (Round to the nearest cent.)

Smart tech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Smart tech to begin paying dividends, beginning with a dividend of $0.50 coming 3 years from today. The dividend should grow rapidly - at a rate of 20% per year - during Years 4 and 5, but after Year 5, growth should be a constant 10% per year. If the required return on Smart tech is 14%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.