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1. Turbo Technology Computers is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the

image text in transcribedimage text in transcribedimage text in transcribed 1. Turbo Technology Computers is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next two years, at 13% in the third year, and at a constant rate of 6% thereafter. Turbo's last dividend was $1.15, and the required rate of return on the stock is 12%. Complete the following calculations: a. Calculate the value of the stock today. b. Calculate P and P2. c. Calculate the dividend yield and capital gains yield for Years 1, 2, and 3. lease answer sections a,b, and c of this question on the corresponding spreadsheet forma hich follows. 1a. Calculate the value of the stock today: 2. Find the PV of Turbo's stock price at the end of Year 3: \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{P3=} & D4 & = & \multicolumn{2}{|c|}{D3(1+g)} \\ \hline & rsg & & \multicolumn{2}{|c|}{rsg} \\ \hline \multicolumn{5}{|l|}{=} \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{=} \\ \hline \multirow{2}{*}{\multicolumn{3}{|c|}{PV of P3=}} & \multirow{3}{*}{=} & \multirow{3}{*}{$} \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} 3. Sum the two components to find the value of the stock today: 1c. Calculate the dividend yields and capital gains yield for Years 1, 2, and 3

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