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I did parts A and B, I just need part C 8-11: Valuling Common Stocks with the Dividend Growth Model Problem 8-20 Nonconstant Growth Stock

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I did parts A and B, I just need part C
8-11: Valuling Common Stocks with the Dividend Growth Model Problem 8-20 Nonconstant Growth Stock Valuation Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a resuit kt is nual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 7% per year indefinitely. Stockholders requir e a return of 11% on RTS stock. The most recent annual dividend (D), which was paid yesterday, was $3.40 per share. a. Calculat e RT's expected dividends for t-1, t-2, t = 3, t = 4, and t 5, Round your answers to the nearest cent. Do not round intermediate calculations. Dz$ 4.90 D3-$ 5.88 D4 s7.06 8-47 b. Calculate the estimated intrinsic value of the stock today, Po. Proceed by finding the present value of the dividends expected at t i, t2.t 3,t 4 present value of the stock price that should exist at t s, Ps. The Ps stock price can be found by using the constant growth equaton. tote that to find Ps you use the , and t s plus the dividend expected at t s156.06 6, which is 7% greater than the t-5 dividend. Round your answer to the nearest cent. Do not round your intermediate c Calculate the expected dividend yield (Dr/Po), the capital gains yield expected during the fist year, and the expected total return (dividend yield plus capital during the first year. (Assume that Po Po, and recognize that the capital gains yield is equal to the total return minus the dividend yield.j, Round your answers to two decimal places. Do not round your intermediate computations Expected dividend yield Capital gains yield Expected total return Alse calculate these same three yields for t 5 (e.g. Du/Ps) ). Round your answers to two decimal places. Do not round your intermediate computations Expected dividend yield Capital gains yield Expected total return

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