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a . If D 0 = $ 1 . 1 0 and r S = 1 0 % , what is TTC ' s stock
a If $ and what is TTCs stock worth today? Round your answer to the nearest cent.
What are its expected dividend, and capital gains yields at this time, that is during Year Round your answers to two decimal places.
b Now assume that TTCs period of supernormal growth is to last for years rather than years. How would this affect the price, dividend yield, and capital gains yield? Round your answer for the price to the nearest cent and for the dividend yield and capital gains yield to two decimal places.
c What will TTCs dividend and capital gains yields be once its period of supernormal growth ends?
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 in millions: After the th year, TTCs financial planners anticipate that its free cash flow will grow at a constant rate of Also, the firm concluded that the new product caused the WACC to fall to The market value of TTCs debt is $ million, it uses no preferred stock, it has zero nonoperating assets; and there are million of common stock outstanding. Use the corporate valuation model to value the stock. Round your answer to the nearest cent.
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