Excel Activity: Nonconstant Growth and Corporate Valuation Taussig Technologies Corporation (TTC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to iast for another 7 years, then decline to 9n=7%. The date has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Downioad spreadshect konconstant Growth and Corporate Voluation- 590040xisx. a. If D0=$1.20 and rs=10%, what is TTC s stock worth today? Round your answer to the nearest cent. 5 per share What are its expected dividend, and capital gains ylelds at this time, that is, during Year 1 ? Round your answers to two decimal places. Dividend yield: Capital gains yleld: b. Now assume that TrCs period of supernormal growth is to last for 5 years rather than 2 years. How would this affect the price, dividend yield, and capital gains yieid? 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 TIC's dividend and capital gains yields be once its period of supemormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth; the calculations are very easy.) Round your answers to two decimal places. The capltal gains yleld will c. What will TTC's dividend and capital gains yields be once its period of supemormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supemomal growth; the calculations are very easy.) Round your answers to two decimal places. Dividend yleid: Capital gains yield: d. TC recenty 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 10th year, TIC's financial planners anticipate that its free cash flow will grow at a constant rate of 7%. Also, the firm concluded that the new product caused the WACC to fali to 9%. The market value of TTC's debt is $1, 500 milion, it uses no preferred stock, it has zero nonoperating assets; and there are 20 million of common stock outstanding. Use the corporate valuation model to value the stock. Round your answer to the nearest cent. onconatant Growth and Corporate Valuation 9. Finding TTC's stock worth today, Its expected dividend, and capital gains yialds Finding the stock value based on the corporate valuation model approach 36 37 d. Finding the stock value based on the corporate valuation model approach