How would this affect its price and dividend yield

Reference no: EM131460420

Question: Taussig Technologies Corporation has been growing at a rateof 20% per year in recent years. This same growth rate is expected to last for another 2 years.

A) If Do -$1.60, rs=10%, and gn=6%, what is TTC's stock worth today? What are its expected dividend yield and capital gains yield at this time?

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?

Reference no: EM131460420

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