. Boost 1:14 PM @ 81% fx G H 7A. Assume supernormal growth is to last for 4 years. How would this affect its price, dividend yield, and capital gains yield? Part 1. Find the price today. $2.00 12.0% 20% 8% Short-run g; for Years 1-4 only. Long-run g; for Year 5 and all following years. 20% 8 % Year Dividend PV of dividends =D Horizon value = Ps = = r,- SL Part 2. Finding the expected dividend yield. D P. Dividend yield = Dividend yield = Dividend yield = Part 3. Finding the expected capital gains yield. Expected return Dividend yield Cap. Gain yield= Cap. Gain yield= Cap. Gain yield= c. What will TTC's dividend yield and capital gains yield be once its period of supernormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 4 years of supernormal growth, and the calculations are very easy.) DA+1 Dividend yield = Dividend yield = Dividend yield = Expected return Dividend yield Cap. Gain yield= Cap. Gain yield= Cap. Gain yield= Upon reflection, we see that these calculations were unnecessary because the constant growth assumption holds that the long-term growth rate is the dividend growth rate and the capital gains yield, hence we could have simply subtracted the long-run growth rate from the required return to find the dividend yield