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(7-19) Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per Supemormol Growth year in recent years. This same supernormal growth rate

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(7-19) Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per Supemormol Growth year in recent years. This same supernormal growth rate is expected to last for anStock Voluorion other 2 years (g1=g2=20%). a. If D0=$1.60,rs=10%, and gL=6%, then what is TTC's stock worth today? What is its expected dividend yield and its capital gains yield at this time? b. Now assume that TTC's period of supernormal growth is to last another 5 years rather than 2 years (g1=g2=g3=g4=g5=20%). How would this affect its price, dividend yield, and capital gains yield? Answer in words only. c. What will TTC's dividend yield and capital gains yield be once its period of supernormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth, and the calculations are very easy.) d. Of what interest to investors is the relationship over time between dividend yield and capital gains yield? SPREADSHEET PROBLEM (7-20) Start with the partial model in the file Cb07 P20 Build a Model. x/s on the textbook's Buld o Model: Super. Web site. Rework parts a, b, and c of Problem 7-19 using a spreadsheet model. For normol Growth ond part b, calculate the price, dividend yield, and capital gains yield as called for in the Corporore Voluarion

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