Brite-Lite Technologies (BLT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, BLT is expected to experience a 25% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and BLT's growth rate will slow to 5% per year indefinitely. Shareholders require a return of 10% on BLT's stock. The most recent annual dividend, which was paid yesterday, was $0.60 per share.
a. Calculate BLT's expected dividends for t = 1, t = 2, t = 3, t = 4, and t = 5.
b. Calculate the value of the stock today, P^0.