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SAM Technologies has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. It is expected
SAM Technologies has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. It is expected to grow at a 15% rate for the next 5 years. By the end of 5 years other firms will have developed similar technology so their growth rate will slow to 5% per year indefinitely. The required rate of return on the stock is 12%. The most recent dividend of $1.75 per share was paid yesterday. Answer the following questions to four decimal places. Do not include dollar signs. What is the estimated dividend in year 1 ? What is the estimated dividend in year 5 ? What is the value of the stock in year 5 ? What is the current value of the stock
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