Problem 7-20 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 result, RT is expected to experience a 18% annual 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 require a return of 11% on RT's stock. The most recent annual dividend (Do), which was paid yesterday, was $2.90 per share. a. Calculate RT's expected dividends for t = 1, t = 2, t = 3, t = 4, and t = 5. Do not round intermediate calculations. Round your answers to the nearest cent. D1 $ = D2 $ D3 $ D4 $ D5 = b. Calculate the estimated intrinsic value of the stock today, Po . Proceed by finding the present value of the dividends expected at t 1,t 2, t 4, and t = 5 plus the 3, t present value of the stock price that should exist at t = 5, P; . The stock price can be 5 found by using the constant growth equation. Note that to find expected at t = 6, which is 7% greater than the t 5 dividend. Round your answer to the nearest cent. Do not round your intermediate computations. 5 you use the dividend A