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a. If D0=$2.60 and rs=8%, what is TTC's stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent. $ What
a. If D0=$2.60 and rs=8%, what is TTC's stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is its expected dividend yield at this time, that is, during Year 1 ? Do not round intermediate calculations. Round your answer to two decimal places. % What is its capital gains yields at this time, that is, during Year 1? Do not round intermediate calculations. Round your answer to two decimal places. % capital gains yield will differ for the duration of the supernormal growth period. capital gains yield will remain the same for the duration of the supernormal growth period. capital gains yield will differ for the duration of the supernormal growth period. dividend yield and capital gains yield will differ for the duration of the supernormal growth period. dividend yield and capital gains yield will differ for the duration of the supernormal growth period. or 5 years of supernormal growth; the calculations are very easy.) Round your answers to two decimal places. Dividend yield: % Capital gains yield: % d. Of what interest to investors is the changing relationship between dividend and capital gains yields over time? I. Some investors need cash dividends, while others would prefer growth. Also, investors must pay taxes each year on the dividends received during the year, while taxes on the capital gain can be delayed until the gain is actually realized. II. Some investors need cash dividends, while others would prefer growth. Also, investors must pay taxes each year on the capital gain during the year, while taxes on the dividends can be delayed until the stock is sold. III. It is of no interest to investors whether they receive dividend income or capital gains income, since both types of income are always taxed at the same rate. IV. It is of no interest to investors whether they receive dividend income or capital gains income, since taxes on both types of income must be paid in the current year. V. It is of no interest to investors whether they receive dividend income or capital gains income, since taxes on both types of income can be delayed until the stock is sold
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