Penn Electric just developed a revolutionary new type of method used to hydraulically generate electricity which is extremely efficient for use in a certain geographic location.  As a result, Penn Electric is expected to experience a 15 percent rate of growth for the next 5 years, after which, growth will slow to 5 percent into the foreseeable future.  The market requires a 12 percent return on Penn Electric stock and the most recent dividend paid was $1.75 per share.  Calculate the theoretical value of the stock today. 

Answer rating: 100% (QA)

Solution The formula is Po Firest we calculate the div... View the full answer