Use the following information and the multi-period dividend discount model to find the value of Computech's common stock.
Last year's dividend was $1.62.
The dividend is expected to grow at 12% for three years.
The growth rate of dividends after three years is expected to stabilize at 4%.
The required return for Computech's common stock is 15%.
Which of the following statements about Computech's stock is least accurate?
A) At the end of two years, Computech's stock will sell for $20.64.
B) Computech's stock is currently worth $17.46.
C) The dividend at the end of year three is expected to be $2.27.
Answer: B
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