It is now December 5, 2023. "Ace Engineering," of Oakland, California has just developed a solar panel capable of generating more electricity than any solar panel currently on the global market. As a result, the firm is expected to experience a 40% annual growth for the next five years. By the end of five years other firms will have developed comparable technology, and Ace's growth rate will slow to 5% per year indefinitely.

Stockholders require a return of 12% on the firm's stock. The most recent annual dividend Do, which was paid yesterday, was $3.50 per share.

1. Calculate the expected dividends for 2023 through 2028.
2. Calculate the value of the stock today.
3. Assume that the stock is traded at the NASDAQ with a price of $150. Is this stock Overvalued or Undervalued?

a. Calculate the Dividend Yield and the Capital Gains Yield respectively.