\begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Nonconstant Growth and Corporate Valuation } & & & \multirow[b]{2}{*}{+} \\ \hline & & & & \\ \hline Last dividend, D0 & $1.10 & & & \\ \hline Required rate of return, r. & 8% & & & s. \\ \hline Supernormal growth rate, g, & 20% & & & \\ \hline Normal growth rate, gn & & & & \\ \hline \multirow[t]{2}{*}{ Period of supernormal growth } & 2 & years & & \\ \hline & & & A & \\ \hline \multicolumn{4}{|c|}{ a. Finding TTC's stock worth today, its expected dividend, and capital gains yields } & \\ \hline Year & Dividend & & Formulas & \\ \hline 1 & & & A & \\ \hline & & & A & \\ \hline & & & & \\ \hline Stock price & & & & \\ \hline Dividend yieid during year 1 & & & a & \\ \hline Capital gains yield during year 1 & & & A & \\ \hline \multicolumn{2}{|c|}{ b. Finding the price, dividend yield, and capital gains yield } & & & \\ \hline Poriod of supernormal growth & 5 & years & & \\ \hline Year & Dividend & & & \\ \hline 1 & & & & \\ \hline 2 & & & & \\ \hline 3 & & . & & \\ \hline 4 & & & & \\ \hline 5 & & - & & \\ \hline \multicolumn{2}{|l|}{ Horizon value at the end of year 5} & & & \\ \hline \multicolumn{2}{|l|}{ Stock price } & & A & - \\ \hline \multicolumn{2}{|l|}{ Dividend yiold during year 1} & & A & \\ \hline \multicolumn{2}{|l|}{ Capital gains yield during year 1} & & A & \\ \hline & & & & \\ \hline \multicolumn{5}{|c|}{ c. Finding TTC's dividend and capital gains yields once its period of supernormal growth ends } \\ \hline \multicolumn{2}{|l|}{ Dividend yield } & & A & \\ \hline Capital gains yield & & & A & \\ \hline \end{tabular} d