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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
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 decline to gn = 7%. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Download spreadsheet Nonconstant Growth and Corporate Valuation-32694e.xlsx a. If Do = $1.40 and rs = 10%, what is TTC's stock worth today? Round your answer to the nearest cent. 62.62 per share $ What are its expected Dividend yield: Capital gains yield: 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? Round your answer for the price to the nearest cent and for the dividend yield and capital gains yield to two decimal places. The price will increase The dividend yield will decrease The capital gains yield will increase dividend, and capital gains yields at this time, that is, during Year 1? Round your answers to two decimal places. 2.68 % 7.32 % to $ to to share. %. %
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