Question: Rocking technologies RT has just developed a sokar panel capable of generating 200% more electricity than amy solar panel currently on the market. As a
Rocking technologies RT has just developed a sokar panel capable of generating 200% more electricity than amy solar panel currently on the market. As a result, RT is exoected to experience a 15% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology and RTs growth rate will slow to 5% per year indefinitely. Stockholders require a return of 6% on the stock. The most recent dividend was paid yesterday at $1.55 per share. What are the expected dividends for years 1-5? What is the intrinsic value of the stock?
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