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will rate the answer eizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electnoty than any solar panel urrently on
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eizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electnoty than any solar panel urrently on the market. As a result, RT is expected to experience a 16% annual growth rate for the neat 5 years. By the end of 5 ears, other firms will have developed comparabie technology, and fris growth rate will slow to 8 so per year indefinitely. itockhilders require a return of 167 , on RTs stock. The most recent aninual dividend (Do), which was paid yesterday, was $3.05 er share. a. Cakulate RT's expected dividends for t=1,t=2,t=3,t=4, and t=5. Do not round intermediate calcutabons. Round your answers to the nearest cent. D1=5D2=1D3=5D4=1D5=1 b. Calculate the estimated intrinsc value of the stock today, Py. Proceed by finding the present value of the dividends expected at t=1,t=2,t=3,t=4, and t=5 plus the present value of the stock price that should exist at t=5,Pf. The Pt stock gnce can be found by using the constant growth equstion. Fote that to find Pr rou use the dividend expected at t=6, which is 8 wh greater than the t=5 dividend. Abund your answer to the nearest cent. Do not round your intermediate computations Step by Step Solution
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