Expanding rapidly and currently needs to retain

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1. Walker’s charges a daily rate of .049 percent on its store credit cards. What interest rate is the company required by law to report to potential customers? Assume each quarter has exactly 91.25 days.

2. 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 $1.00 coming 3 years from today. The dividend should grow rapidly-at a rate of 33% per year-during Years 4 and 5; but after Year 5, growth should be a constant 7% per year. If the required return on Computech is 12%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations. $

Reference no: EM131973162

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