please include explenation for each answer.

Taussis Technologies Corporation (IIC) has been growing at a rate of 205 per year in recent yearn. This same growth rate is expected to last for another 2 years, then to decline to mn=6%6. a. If D0 =$1.60 and r=10%, what is T. C s stock rooth today? What are its expected dividend and capital gains yields at this time, that it, during Year 1 ? 1. Find the price today. 2. Find the expected divilead yield. Recall that the expected dividend yield is eqaal to the next expected antual dhidend ditidral by the price at the beginning of the peried. 39. Dividend yield = 1. Find the expected capital eaint yield. The capital zains yield can be calculated by simply subtracting the diridend yitld from the erpected total retarn. 4) Cap. rain yield - E.spected total return 40. How woeld this affect the price, dividend yirld, asd capical gaint yield? c. What will ITC's dividend and capital gains yields be once its period of rupernormal 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.) We used the 5year supernormal growth scenario for this calculation, but ultimately it does not matter which example you use, as they both yield the same result. \begin{tabular}{l} Dividend yield = \\ Dividend yield = \\ \hline \end{tabular} Cap. gain yield = Expected total return Cap. zain yield = Dividend yield d. TTC recently introduced a new line of prodocts that has been wildly snecettful. On the bat of thin success and anticipated future success, the following free cash flows were projected: 110 After the 10th year, TTC's financial plansers anticipate that its free cash foo will grow at a canstant rate 317 of 69. Alse, the firm concluded that the new prodoct caused the Wace to fall to 9%4. The market valee 112 of TTC's debt it $1,200 million; if ahet no prefereed atock; and theet are 20 million chare of conemon 113 stock wotstandieg. Uhe the cerperate valuation wodel approach to value the stack d. ITC recently intreduced a new line of preducts that has been wildly inccesfol, On the batis of this tuccess and anticipated fature success, the folloning feet eash flows were projected: of 644. Alse, the firm concluded that the new preduct caused the Wace to fall 4090 . The marker valee of TTC: debs bi 51,200 millien; it was no preferred steck; aed there are 20 millies thare of cammen Mock eutitanding. Use the corperate valuation wedel approach te value the steck. Homework #2 Please fill in the cells in color below by referencing other cells whenever possible. 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 to decline to gn =6%. a. If D0=$1.60 and rs=10%, what is TTCs stock worth today? What are its expected dividend and capital gains yields at this time, that is, during Year 1 ? 1. Find the price today. 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 yield? 1. Find the price today. Part 2. Find the expected dividend yield. \begin{tabular}{ll|l|} 71 & Dividend yield = & D1 \\ \hline 72 & Dividend yield =1 & \\ \hline \end{tabular} Part 3. Find the expected capital gains yield. \begin{tabular}{l} Cap. gain yield = Expected total return \\ Cap. gain yield = \\ \hline \end{tabular} Dividend yield c. What will TTC's dividend and capital gains yields 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.) 85 We used the 5-vear supernormal erowth scenario for this calculation, but ultimatelv it does not matter 15 We used the 5-year supernormal growth scenario for this calculation, but ultimately it does not matter which example you use, as they both yield the same result. \begin{tabular}{ll|} Dividend yield = & DN+1 \\ \hline Dividend yield = \\ \hline \end{tabular} \begin{tabular}{l} Cap. gain yield = Expected total return \\ \hline Cap. gain yield = \\ \hline \end{tabular} Dividend yield d. TTC 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: \begin{tabular}{|l|l|l|} \hline 110 & After the 10th year, TTC's financial planners anticipate that its free cash flow will grow at a constant rate \\ \hline 111 & of 6%. Also, the firm concluded that the new product caused the WACC to fall to 9%. The market value \\ \hline 112 & of TTC's debt is $1,200 million; it uses no preferred stock; and there are 20 million shares of common \\ \hline 113 & stock outstanding. Use the corporate valuation model approach to value the stock. \\ \hline 114 & & \\ \hline 115 & INPUT DATA: (Dollars in Millions) & 9% \\ \hline 116 & WACC & 6% \\ \hline 117 & gn & 20 \\ \hline 118 & Millions of shares & $1,200 \\ \hline 119 & MV of debt & \\ \hline 120 & & \\ \hline 121 & \end{tabular} 126 PV of FCF1-10 = 127 HV at Year 10 of FCF after Year 10=FCF11/(WACCgn) : $5.05 After the 10tb year, 1CC 's finascial planners anticipate that its free cash fow will grow at a constant rate of 5%. Alse, the firm concloded that the new prodnct caused the WACC to fall to 9%. The market valee of TTC's debt i 51, 200 million; it ases ne preferred stock; and there are 20 million shares of common stock outstanding. Use the corperate valuation model approach to valee the stock. Taussis Technologies Corporation (IIC) has been growing at a rate of 205 per year in recent yearn. This same growth rate is expected to last for another 2 years, then to decline to mn=6%6. a. If D0 =$1.60 and r=10%, what is T. C s stock rooth today? What are its expected dividend and capital gains yields at this time, that it, during Year 1 ? 1. Find the price today. 2. Find the expected divilead yield. Recall that the expected dividend yield is eqaal to the next expected antual dhidend ditidral by the price at the beginning of the peried. 39. Dividend yield = 1. Find the expected capital eaint yield. The capital zains yield can be calculated by simply subtracting the diridend yitld from the erpected total retarn. 4) Cap. rain yield - E.spected total return 40. How woeld this affect the price, dividend yirld, asd capical gaint yield? c. What will ITC's dividend and capital gains yields be once its period of rupernormal 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.) We used the 5year supernormal growth scenario for this calculation, but ultimately it does not matter which example you use, as they both yield the same result. \begin{tabular}{l} Dividend yield = \\ Dividend yield = \\ \hline \end{tabular} Cap. gain yield = Expected total return Cap. zain yield = Dividend yield d. TTC recently introduced a new line of prodocts that has been wildly snecettful. On the bat of thin success and anticipated future success, the following free cash flows were projected: 110 After the 10th year, TTC's financial plansers anticipate that its free cash foo will grow at a canstant rate 317 of 69. Alse, the firm concluded that the new prodoct caused the Wace to fall to 9%4. The market valee 112 of TTC's debt it $1,200 million; if ahet no prefereed atock; and theet are 20 million chare of conemon 113 stock wotstandieg. Uhe the cerperate valuation wodel approach to value the stack d. ITC recently intreduced a new line of preducts that has been wildly inccesfol, On the batis of this tuccess and anticipated fature success, the folloning feet eash flows were projected: of 644. Alse, the firm concluded that the new preduct caused the Wace to fall 4090 . The marker valee of TTC: debs bi 51,200 millien; it was no preferred steck; aed there are 20 millies thare of cammen Mock eutitanding. Use the corperate valuation wedel approach te value the steck. Homework #2 Please fill in the cells in color below by referencing other cells whenever possible. 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 to decline to gn =6%. a. If D0=$1.60 and rs=10%, what is TTCs stock worth today? What are its expected dividend and capital gains yields at this time, that is, during Year 1 ? 1. Find the price today. 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 yield? 1. Find the price today. Part 2. Find the expected dividend yield. \begin{tabular}{ll|l|} 71 & Dividend yield = & D1 \\ \hline 72 & Dividend yield =1 & \\ \hline \end{tabular} Part 3. Find the expected capital gains yield. \begin{tabular}{l} Cap. gain yield = Expected total return \\ Cap. gain yield = \\ \hline \end{tabular} Dividend yield c. What will TTC's dividend and capital gains yields 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.) 85 We used the 5-vear supernormal erowth scenario for this calculation, but ultimatelv it does not matter 15 We used the 5-year supernormal growth scenario for this calculation, but ultimately it does not matter which example you use, as they both yield the same result. \begin{tabular}{ll|} Dividend yield = & DN+1 \\ \hline Dividend yield = \\ \hline \end{tabular} \begin{tabular}{l} Cap. gain yield = Expected total return \\ \hline Cap. gain yield = \\ \hline \end{tabular} Dividend yield d. TTC 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: \begin{tabular}{|l|l|l|} \hline 110 & After the 10th year, TTC's financial planners anticipate that its free cash flow will grow at a constant rate \\ \hline 111 & of 6%. Also, the firm concluded that the new product caused the WACC to fall to 9%. The market value \\ \hline 112 & of TTC's debt is $1,200 million; it uses no preferred stock; and there are 20 million shares of common \\ \hline 113 & stock outstanding. Use the corporate valuation model approach to value the stock. \\ \hline 114 & & \\ \hline 115 & INPUT DATA: (Dollars in Millions) & 9% \\ \hline 116 & WACC & 6% \\ \hline 117 & gn & 20 \\ \hline 118 & Millions of shares & $1,200 \\ \hline 119 & MV of debt & \\ \hline 120 & & \\ \hline 121 & \end{tabular} 126 PV of FCF1-10 = 127 HV at Year 10 of FCF after Year 10=FCF11/(WACCgn) : $5.05 After the 10tb year, 1CC 's finascial planners anticipate that its free cash fow will grow at a constant rate of 5%. Alse, the firm concloded that the new prodnct caused the WACC to fall to 9%. The market valee of TTC's debt i 51, 200 million; it ases ne preferred stock; and there are 20 million shares of common stock outstanding. Use the corperate valuation model approach to valee the stock