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If you could just help me with part c! Thank you! NONCONSTANT GROWTH Assume that it is now January 1, 2017-Wayne-Martin Electric Inc. (WME) has

image text in transcribedimage text in transcribedIf you could just help me with part c! Thank you!

NONCONSTANT GROWTH Assume that it is now January 1, 2017-Wayne-Martin Electric Inc. (WME) has developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 16% annual growth rate for the next 5 years. Other firms will have developed comparable technology by the end of 5 years, and wME's growth rate will slow to 4% per year indefinitely. Stockholders require a return of 12% on wME's stock. The most recent annual dividend (Do), which was paid yesterday, was $1.93 per share. a. Calculate WME's expected dividends for 2017, 2018, 2019, 2020, and 2021. Round your answers to the nearest cent. Do not round your intermediate calculations. D2017-$ 2.24 D2018$ 2.60 D2019 $3.01 D2020$3.49 D2021$ 4.05 b. Calculate the value of the stock today, Po. Proceed by finding the present value of the dividends expected at the end of 2017, 2018, 2019, 2020, and 2021 plus the present value of the stock price that should exist at the end of 2021. The year end 2021 stock price can be found by using the constant growth equation. Notice that to find the December 31, 2021, price, you must use the dividend expected in 2022, which is 4% greater than the 2021 dividend Round your answer to the nearest cent. Do not round your intermediate calculations. $41.92 c. Calculate the expected dividend yield (D1/Po), capital gains yield, and total return (dividend yield plus capital gains yield) expected for 2017. (Assume that Po = Po and recognize that the capital gains yield is equal to the total return minus the dividend yield.) Round your answers to two decimal places. Do not round your intermediate calculations

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