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Inc. (Brac) has developed a solar panel capable of generating 250% more electricity than any other solar panel currently on the market. As a result, Brac is expected to experience a 15% annual growth rate for the next 5 years. Other firms will have developed comparable technology by the end of 5 years, and Bracs growth rate will slow to 5% per year indefinitely. Stockholders require a return of 12% on Bracs stock. The most recent annual dividend, which was paid December 2020, was $1.75 per share. a. Calculate Bracs expected dividends to be paid at December, 2021, 2022, 2023, 2024, and 2025.

b. Calculate the value of the stock today using the DDM.

c. Calculate the expected dividend yield, capital gains yield, and total return (dividend yield plus capital gains yield) expected for 2021.

d. How might an investors tax situation affect his or her decision to purchase stocks of companies in the early stages of their lives, when they are growing rapidly, versus stocks of older, more mature firms?