9-22) NONCONSTANT GROWTH AND CORPORATE VALUATION Rework problem 9-18, parts a, b, and c, using a spreadsheet model. For part b, calculate the price, dividend yield, and capital gains yield as called for in the problem. After completing parts a through c, answer the following additional question, using the spreadsheet model.

d. TTC recently introduced a new line of products that has been wildly successful. On the basis of this success and anticipated future success, the following free cash flows were projected:

Year 1 2 3 4 5 6 7 8 9 10

FCF $5.5 $12.1 $23.8 $44.1 $69.0 $88.8 $107.5 $128.9 $147.1 $161.3

After the tenth year, TTC's financial planners anticipate that its free cash flow will growat a constant rate of 6%. Also, the firm concluded that the new product caused the WACC to fall to 9%. The market value of TTC's debt is $1200 million; it uses no preferred stock; and there are 20 million shares of common stock outstanding. Use the corporate valuation model to value the stock.