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dividend equal to $2.50 per share, and it plans to continue paying this same dividend for the following two years (a total of three years). After the $2.50 dividend is paid at the end of Year 3 (iie., beginning in Year 4), the company expeets the dividend to grow at a 3 percent fate, and this growth rate will continue indefinitely. If investors tequire a 14 percent fate of return to purchase the company's common stock, what should be the market value of Mieroweb's stock todayr Ulimate Eleetric, Inc. has just developed a solar panel capable of generating 200 percent more eloctricity than any solar panel currently on the market. As a result, Ulimate is expected to experience a 15 percent annual growth rate for the next five years. When the five-year period ends, other firms will have developed comparable technology, and Ultimate's growth rate will slow to 5 percent per year indefinitely. Stockholders require a retum of 12 pereent on Ultimnte's stock. The firm's most recent annual dividend (DD), which was paid yesterday, was $1.75 per share. a. Cnlculate the value of the stock today. b. Calculate the dividend yield, D Po, the expected capital gains yield, and the expectod total retum (dividend yield plus capital gains yield) for this year. Caleulate these same three yields

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