Excel Activity: Nonconstant Growth and Corporate Valuation Taussig Technologies Corporation (TIC) 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 decine to gn=5%. The data 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. X Downioad soreadiheet Noncenatant Growth and Corporate valuation-805cal. xix a. If D0=$1.60 and rs=9%, what is C2 s stock worth today? Round your answer to the nearest cent. s. per share What are its expected dividend, and capital gans vields at this time, that is, during Year 1 ? Round your answers to two decimal places. Dividend vield: % Capital gains vield b. Now assume that TIC's 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 yeld? Round your answer for the price to the nearest cent and for the dividend yield and capital gains vield to two decimal places. c. What will TrC's dividend and capital gains yelds 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 5 years of supernormal growth; the calculations are very easy.) Round your answers to two decimal places. d. TrC recently 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): C recently 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 10 th year, C 's financial planners anticipate that its free cash flow will orow at a constant rate of 5%. Also, the firm conduded that the new product caused the wACC to fall to 8%. The market value of TrC's debt is $1,200 million, it uses no preferred stock, it has zero nonoperating assets; and there are 20 milkon of common stock outstanding. Use the corporate valuation model to value the stock. Round your answer to the nearest cent. per share \begin{tabular}{|c|c|} \hline Last dividend, DO & $1.60 \\ \hline Required rate of return, rs & 9% \\ \hline Supernormal growth rate, gs & 20% \\ \hline Normal growth rate, gn & 5% \\ \hline Period of supernormal growth & \\ \hline \end{tabular}