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 gn $=7\%.$

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.

Download spreadsheet Nonconstant Growth and Corporate Valuation$-$e$097$b$6.$xlsx

If D$0=$ $$1\mathrm{.}70$ and rs $=10\%,$ what is TTC$\text{'}$s stock worth today? Round your answer to the nearest cent.

$ fill in the blank $2$

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: fill in the blank $3$

$\%$

Capital gains yield: fill in the blank $4$

$\%$