Please clearly type out all solutions/ short answers. The correct answer for part a is given as $78.35.

8-21 Nonconstant Growth Stock Valuation Conroy Consulting Corporation (CCC) has been growing at a rate of 30% per year in recent years. This same nonconstant growth rate is expected to last for another 2 years (90,1 = 81,2 = 30%). a. If Do = $2.50, 15 = 12%, and gL = 7%, then what is CCC's stock worth today? What is its expected dividend yield for the first year? What is the expected capital gains yield for the first year? b. Now assume that CCC's period of nonconstant growth is last another 5 years rather than 2 years (80,1 = 61,2 = 923 = 83,4 = 84,5 = 30%). How would this affect its price, dividend yield, and capital gains yield? Answer in words only. c. What will CCC's dividend yield and capital gains yield be once its period of nonconstant growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 years or 5 years of nonconstant growth, and the calculations are very easy.) d. Of what interest to investors is the relationship over time between dividend yield and capital gains yield? ANSWER Po = $78.35