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aussig Technologies Corporation ( TTC ) has been growing at a rate of 2 0 % per year in recent years. This same growth rate
aussig Technologies Corporation TTC has been growing at a rate of per year in
recent years. This same growth rate is expected to last for another years, then decline to
a If D$ and rs what is TTCs stock worth today? What are its expected
dividend, and capital gains yields at this time, that is during Year
b What will TTCs dividend and capital gains yields be once its period of supernormal
growth ends?
c Explain why investors are interested in the changing relationship between dividend
and capital gains yields over time
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