expected to last for another 2 years, then decline to on =706 a. If D0=32.50 and r3=12%, what is TrCis stock woeth today? Do not found intermediate calculations. Round your answer to the nearest cent. 5 What is its expected dividend yield at this time, that is, during Year 1 ? Do not round intermediate calculations, Round your answer to two dedimal places. What is its capital gains ylelds at this time, that is, during Year 1 ? Do not rourid intermedate calculations. Round your answer to two decimal places. of b. Now assume that.TTC'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 yleld? I. Due to the longer period of supernocmal growth, the value of the stock will be higher for each yeat. The total return as well as the distribution between dividend yield and capital gains yieid will differ for the duration of the supemorinal growth period. II. Due to the longer period of supernormal growth, the value of the stock will be higher for each yeac. The total return as well as the distribution between dividend yield and capital gains yield wili remain the same for the duration of the superniormal growth period. III. Due to the longer period of supernormal growth, the value of the stock will be lower for each year. The total return as well as the distribution between dividend yield and capital gains yield will diffor for the duration of the supernormal growth period. IV. Due to the longer period of supemormal growth, the value of the stock wili be higher foc each yeat Although the total retum will remain the same, the distribution between dividend yield and capital oains yield will differ for the duration of the supernormal growth period. V. Due to the longer period of supernormaf oroveh, the value of the stock. Will be lower for each year. Although the total return will remain the same, the distribution between dividend yeld and capital gains yield will differ for the duration of the supernomal growth period. c. What will THC's dividend and capital gains yleds be once its period of supernonnal growth ends? (Hint: These values whil be the same regardless of whether you examine the case of 2 or 5 years of supemormal orowth; the calculations arm yery eask) Round your answers to two decimal places: Dividend yield: Capital gains yield: S. Of what interest to investors is the changing relationship between dividend and capital gains ylids over time? t. Some investors need cash dividends, while others would preler growth, Also, investors must pay taxes each year on the dividends received during the year, while taxes on the caistal gain can be delayed until the gain is actually reallaw. IH. Some imvestors need cash dividends, while others would nrefer growth. Also, investors must pay taxes each year on the capital gain during the year, while taxes on the dividends can be delayed until the stock is sold. III. It is of no interest to investors whether they receive fividend income or capital gains income, since both tvpes af income are always taxed ot the same rate: FW. It is of no interest to investors whether they recelve dividend income of capital gains incomie, since taxes on both types of income must be pald in the current year. v. It is of no interest to investors whether they recelve didend income of capital gains income, since taxes on both types of income can be delayed until the stock is sold