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SoCool Tech Stuff (STS), is a start-up tech firm that just paid a dividend of $2.50...

  1. SoCool Tech Stuff (STS), is a start-up tech firm that just paid a dividend of $2.50 per share to its shareholders. The firm expects to grow at 15 percent for the next two years and 10 percent in years three and four before growth levels off to a constant rate of 5 percent for the remainder of the firm’s life. Investors require a 20 percent return to purchase STS stock. Use the three step approach, demonstrated in your text to find the value of the firm’s stock.
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