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years, then decline to gn=5%. a. If D0=$2.00 and rS=8%, what is TTC's stock worth today? Do not round intermediate calculations. Round your answer to
years, then decline to gn=5%. a. If D0=$2.00 and rS=8%, what is TTC'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 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? dividend yield and capital gains yield will differ for the duration of the supernormal growth period. dividend yield and capital gains yield will remain the same for the duration of the supernormal growth period. dividend yield and capital gains yield will differ for the duration of the supernormal growth period. IV. Due to the longer period of supernormal growth, the value of the stock will be higher for each year. Although the the same, the distribution between dividend yield and capital gains yield will differ for the duration of the supernormal growth period. distribution between dividend yield and capital gains yield will differ for the duration of the supernormal growth period. you examine the case of 2 or 5 years of supernormal growth; the calculations are very easy.) Round your answers to two decimal places. Dividend yield: % Capital gains yield
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