2. (17 points) The current dividend of the stock of the Seneca company is $1.70 per share (i.e., D.). Under present conditions, this dividend is expected to grow at a rate of 7% annually for the foreseeable future. The beta of Seneca's stock is 1.2. The risk-free interest rate is 3.5%, and the expected market return is 10% p.a. a. (7 points) What is the value of a share of Seneca's stock? Seneca's management plans to introduce a new solar panel that will greatly reduce the cost of solar energy. As a result, the dividend growth rate is expected to increase to 8% annually. Management also expects that the stock's beta will increase to 1.4. b(7 points) What is the new value of a share of Seneca's stock if the new solar panel is introduced? (3 points) Would you recommend this new solar panel to Seneca's management? Why