Question
it's now January 1, 2007 .XXX co. has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on
it's now January 1, 2007 .XXX co. has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 30% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RTs growth rate will slow to 8% per year indefinitely. Stockholders require a return of 12% on RTs stock. The most recent annual dividend (D0), which was paid yesterday, was $1.50 per share. a-Calculate the expected dividends for 2017 through 2022. b-Calculate the value of the stock today. Assume that the stock is traded at the NASDAQ with a price of $120. Is this stock Overvalued or Undervalued? c. Calculate the Dividend yield in 2017.
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