1) Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends

1) 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 44% per year - during Years 4 and 5, but after Year 5, growth should be a constant 8% per year. If the required return on Computech is 14%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

2) Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just? completed, Grips earned ?$3.78 per share and paid cash dividends of ?$2.08 per share ?(D0=$2.08?). ? Grips' earnings and dividends are expected to grow at 35?% per year for the next 3? years, after which they are expected to grow 9?% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 16?% on investments with risk characteristics similar to those of? Grips?  

The maximum price per share that Newman should pay for Grips is what?

3) You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.9. The risk-free rate is 2.7%, and the market risk premium is 6%. Justus currently sells for $42.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent.