Question
Gustav Technologies (GT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a
Gustav Technologies (GT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, GT is expected to experience a 15% annual growth rate for the next 3 years and a 10% growth for 2 years after that. By the end of 5 years, other firms will have developed comparable technology, and GT's will remain constant indefinitely. Stockholders require a return of 15% on GT's stock. The most recent annual dividend, which was paid yesterday, was $1.50 per share. Calculate the estimated intrinsic value of the stock today.
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