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Taussig Technologies Corporation (TC) has been growing at a rate of 16% per year in recent years. This same growth rate is expected to last
Taussig Technologies Corporation (TC) has been growing at a rate of 16% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to gn=6%. a. If D0=$1.70 and rs=12%, what is TC's stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is its expected dividend yield at this time, that is, during Year 1? Do not round intermediate calculations. Round your answer to two decimal places. (\% What is its capital gains yields at this time, that is, during Year 1 ? Do not round intermediate calculations. Round your answer to two decimal places. ( ) b. Now assume that TCC'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? supernormal growth period. duration of the supernormal growth period. duration of the supernormal growth period. supernormal growth period. the supernormal growth period. calculations are very easy.) Round your answers to two decimal places. Dividend yield: % Capital gains yield: %
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