The Blinkelman corporation has announced that it plans to in

Assignment Help Finance The Blinkelman corporation has announced that it plans to in

Finance

The Blinkelman corporation has announced that it plans to in

The Blinkelman corporation has announced that it plans to introduce a new solar panel that will grea… Show more The Blinkelman corporation has announced that it plans to introduce a new solar panel that will greatly reduce the cost of solar energy. As a result, analysts now expect the company’s earnings, currently (year 0) 1$ per share to grow by 50% per year for the next 3 years, and by 8% per year thereafter. Blinkelman does not currently pay a dividend but it expects to pay out 20% of its earnings beginning 2 years from now. The payout ratio is expected to become 50% in 5 years and to remain at that level. The company’s marginal tax rate is 40%. If you require a 20% rate of return on a stock such as this, how much would you be willing to pay for it today? • Show less

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