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Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year recent year. This same growth rate is expected to last for

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Taussig Technologies Corporation (TTC) has been growing at a rate of 20% per year recent year. This same growth rate is expected to last for another 2 years, then decline to g_n = 6%. a. If D_0 = $1.60 and r_s 10%, what is TTCs stock worth today? What are its expected dividend, and capital gains yields at this time, that is, during Year 1? 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? Answer in words only. c. What will TTC's dividend and capital gains yields be once its period of supernormal growth ends? d. Explain why investors are interested in the changing relationship between dividend and capital gains yields over time. Barrett Industries invests a large sum of money in R&D; result, it retains and reinvests all of its earnings. In other words, Barrett not pa dividends, and it has no plans to pay dividends in the near future. A major pension interested in purchasing Barrett's stock. The pension fund manager has estimated free cash flows for the next 4 years as follows: $3 million, $6 million, $10 million, $15 million. After the fourth year, free cash flow is projected to grow at a Barrett's WACC is 12%; the market value of its and preferred stock totals and it has 10 million shares of common stock outstanding

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