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Tavisig Technologies Corporation (TTC) has been growing at a rate of 20% per year in recent years, This asme grow rh rate is eljected to

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Tavisig Technologies Corporation (TTC) has been growing at a rate of 20% per year in recent years, This asme grow rh rate is eljected to last for another 2 . years, then decline to 9gn=6% The data has been coliected in the Microsof Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. a. If D0=$1,20 and r5=9%, what is TrC's stock worth today? Round your answer to the nearest cent. 5 (4) pershare What are its expected dividend, and capital gains yieids at this time, that is, during Year 1 ? Round your answers to two decimal places. 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 yleld to two decimal piaces. The price will to $ per share. The dividend yield will to % The capital gains yleld will to % b. Now assume that TC's period of supernormal growth is to last for 5 years rather than 2 years. How woild this affect thd price, dividend vield, and capitat gains yield? Round your answer for the price to the nearest cent and for the dividend vieid and capital gains vieid to two decimal places. c. What will TTC's dividend and capital gains ylelds be once its period of supernormal growth ends? (Hint: These values will be the same regardiets of whether you examine the case of 2 or 5 years of supernormal growth; the caiculations are very easy.) Round your answers to two decimal places. Pividend yield: Capital gains yleld: d. Tre 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 (in millions): After the 10th year, TTC's financial planners anticipate that its free cash flow will grow at a constant rate of 6%. Also, the firm concluded that the new product caused the WACC to fall to 8%. The market value of TTC's debt is $1,100 million, it uses no preferred stock, it has zero nonoperating assets; and there are 25 million of common stock outstanding. Use the corporate valuation model to value the stock. Round your answer to the nearest cent: per share

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