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NONCONSTANT GROWTH STOCK VALUATION Taussig Technologies Corporation has been growing at a rate of 20% per year in recent years. This same expected to last
NONCONSTANT GROWTH STOCK VALUATION Taussig Technologies Corporation has been growing at a rate of 20% per year in recent years. This same expected to last for another 2 years, then decline to gn-690 (TIC growth rate is 8 1090, what is TTC's stock worth today? What are its expected If Do dividend, and capital gains yields at this time, that is, during Year 1? a. $1.60 and rs- b. Now assume that TTC's period of supernormal growth is to last for 5 years rather c. What will TTC's dividend and capital gains yields be once its period of supermormal d. Explain why investors are interested in the changing relaopidad 2 years. How would this affect the price, dividend yield, and capital gains yielat Answer in words only. 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 dividend and capital gains yields over time. ne.TD as a
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