Non-constant growth model problem. Show all work. 23 points It is now January 1, 2020. Whitson Electric Inc. has just developed a solar panel capable of generating 200 percent more electricity than any solar panel currently on the market. As a result, Whitson is expected to experience a 15 percent annual growth rate for the next 3 years. By the end of 3 years, other firms will have developed comparable technology, and Whitson's growth rate will slow to 5% indefinitely. Stockholder's require a return 12 percent on Whitson's stock. The most recent annual dividend (Do), which was paid yesterday was $1.75 per share.

A. Calculate Whitson's expected dividends for 2020, 21, and 22, and 23. 6 points. Put into a timeline.

B. Calculate the value of the stock today, Po. Show work. 5 points

C. Calculate the dividend yield, capital gains yield and total yield expected in 2020. 6 points 7 Previous Problem continued.

D. Suppose your boss tells you she believes that Whitson's annual growth rate will be only 12% during the next 3 years and that the firm's normal growth rate will be only 4%. Without doing any calculations, what general effect would these growth rate changes have on the price on Whitson's stock? 3 points

E. Suppose that your boss also tells you that she regards Whitson as being quite risky and that she believes the required rate of return should be 14% NOT 12%. Again, without doing any calculations, how would the higher rate of return affect the price of the stock, its capital gains yield and its dividend yield? 3 points