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. a. If D = $1.60, r, = 10%, and gn = 6%, what is TTC's stock worth today? What are its expected dividend yield and capital gains yield at this time? Mini Case 311 b. Now assume that TTC's period of supernormal growth is to last another 5 years rather than 2 years. How would this affect its price, dividend yield, and capital gains yield? Answer in words only. c. What will be TTC's dividend yield and capital gains yield once its period of supernormal growth ends? (Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth; the calculations are very easy.) d. Of what interest to investors is the changing relationship between dividend yield and capital gains yield over time? Spreadsheet Problem Start with the partial model in the file FM12 Ch 08 P20 Build a Model.xls from the 3-20) textbook's Web site. Rework Problem 819, parts a, b, and c, using a spreadsheet model: model. For part b, calculate the price, dividend yield, and capital gains yield as rowth called for in the problem. vation Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of the year (i.e., D = $1.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, r, is 15%. What is the value per share of the company's stock? Problem 8-5 as well you want to buy the stock and your broker says she can buy it for you for $50 per share -- should you buy it and what kind of total profit or loss would you make if you bought 200 shares and sold them at the market price