Question: please help me to do it use d=5, r=14% instead of numbers on picture Question 1: It is now April 27, 2021. Pelage Solar Corporation

 please help me to do it use d=5, r=14% instead of
numbers on picture Question 1: It is now April 27, 2021. "Pelageplease help me to do it
use d=5, r=14% instead of numbers on picture

Question 1: It is now April 27, 2021. "Pelage Solar" Corporation in San Leandro California is expected to experience a 28% annual growth for the next seven years. By the end of seven years other firms will have developed comparable technology, and Pelage's growth rate will slow to 8% per year indefinitely. Stockholders require a retum of 12% on the firm's stock. The most recent annual dividend Di, which was paid yesterday, was $3.00 per share. Calculate the expected dividends for 2021 through 2028 Calculate the value of the Pelage's stock today. Calculate the current Dividend Yield and the Capital Gains Yield, respectively . Suppose that the stock is traded at NASDAQ at $131.49 dollars. Is the stock Overvalued or Undervalued? Explain your answer properly. R-12% Do-3 g 28% g=8% 2021-2028. G=28% 2028 onwards, G-8% Step 1 Year 2020, D.-3.8 Year 2021, D. - 4.9 Year 2022.D: -6.3 Year 2023, D-8.1 Year 2024, D10,3 Year 2025, D.-13.2 Year 2026, D=16:9 Step2 PV(DI)=3.43 PVD:) - 3.92 PV(D) -4.48 PV(D) -5.12 PV(D) 5.85 PV(D) -6,68 PV(D) 7.64 Step 3 PV dividend = 37.12 Step 4 Pr=Ds/R-G=Drip (tr) = 455.99 Steps Step2 PV(DI) =3.43 PV(D2) =3.92 PV(D3) -4.48 PV(D4)=5.12 PV(Ds) =5.85 PV(D) -6.68 PV(D7)=7.64 Step 3 PV dividend = 37.12 Step 4 Pr=Ds/Rs-G=D7(+9)/(rs-) = 455.99 Step 5 PV(P7) = P7/(1+Rs)7= 206.27 Step 6 Po= 37.12 + 206.27 = 243.38 Step 7 Divided Yield =D1/Po= 1.58% The stock is Undervalued

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