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Please solve without using excel Q.1 (10 marks) a. Taussig Technologies Corporation (TTC) has been growing at a rate of 20 percent per year in
Please solve without using excel
Q.1 (10 marks) a. Taussig Technologies Corporation (TTC) has been growing at a rate of 20 percent per year in recent years. This same growth rate is expected to last for another 2 years, then to decline to constant growth of 6%. If DO is $1.60 and Ke is 10%, what is TTC's stock worth today? What are its expected dividend and capital gains yields at this time, that is, during Year 1? (5 marks) b. A share of preferred stock for the Buford Pusser Baseball Bat Company just sold for $100 and carries an $8 annual dividend. What is the yield on this stock? Now assume that this stock has a call price of $110 in five years, when the company intends to call the issue
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