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

Question:

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 $0.75 coming 3 years from today. The dividend should grow rapidly at a rate of 38% 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 17%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 6% per year. If Do$6 and rs 11 %, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent.

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