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C$9$ Nonconstant Growth and Corporate Valuation $***$ PLEASE ANSWER ACCORDING TO EVERYTHING THAT NEEDS TO BE ANSWERED$/$ CORRECTED ON THE PICTURE TO GET A POSITIVE FEEDBACK $***$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 $g_n=7\%.$

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

a$.$ If $D_0=$$$1\mathrm{.}20$ and $r_s=10\%,$ what is TC$\text{'}$s stock worth today? Round your answer to the nearest cent.

$ per share

What are its expected dividend, and capital gains yields at this time, that is$,$ during Year $1?$ Round your answers to two decimal places.

Dividend yield:

Capital gains yield:

b$.$ Now assume that TC$\text{'}$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 $|$

The dividend yield will

The capital gains yield will

c$.$ What will TTC$\text{'}$s dividend and capital gains yields be 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.$)$ Round your answers to two decimal places.

Dividend yield:

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