Excel Activity: Nonconstant Growth and Corporate Valuation

Taussig Technologies Corporation $($TTC$)$ has been growing at a rate of $20\%$ per year in recent years. This same growth rate is expected to last for another $2$ years, then decline to $g_n=5\%.$

Download spreadsheet Nonconstant Growth and Corporate Valuation$-565107.$xIsx

a$.$ If $D_0=$$$1\mathrm{.}10$ and $r_s=10\%,$ what is TTC$\text{'}$s stock worth today? Round your answer to the nearest cent.

$

per share

What are its expected dividend, and capital gains yields at this time, that is$,$ during Year $1?$ Round your answers to two decimal places.

Dividend yield:

$\%$

Capital gains yield:

$\%$

cent and for the dividend yield and capital gains yield to two decimal places.

The price will

to $

per share.

The dividend yield will

to

$\%.$

The capital gains yield will

to

$\%.$

growth; the calculations are very easy.$)$ Round your answers to two decimal places.

Dividend yield:

Capital gains yield:

$\%$

Year

FCF

answer to the nearest cent.

$

per share