What is its expected dividend yield at this time

Assignment Help Finance Basics
Reference no: EM133665266

Problem

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 gn = 8%.

A. If D0 = $1.30 and rs = 10%, what is TTC's stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent.

B. 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.

C. 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.

I am getting 6.36 for stock worth today and a 20.44 dividend yield but it states I am incorrect. I can not move on to do capital gains without correct numbers.

Reference no: EM133665266

Questions Cloud

What is the present value of the technology : Subsequent annual cash flows will grow at 4.3 percent in perpetuity. What is the present value of the technology if the discount rate is 11 percent?
What is the return on investment of the loyalty program : One of the recurring questions Jörgensten faces is What is the return on investment of the loyalty program?
Explain the law of agency as it relates to insurance : Explain subrogation, which is often included in insurance contracts. Give an example of how it might work. Explain the law of agency as it relates to insurance.
About the history of mexican american civil rights movement : About the history of the Mexican American civil rights movement - Did they win? Examine when they started, what they did, and where they are now.
What is its expected dividend yield at this time : 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 will be the companys stock price the stock split : What will be the company's stock price following the stock split, assuming that the split has no effect on the total market value of JPix's equity?
Discuss the traits associated with republican motherhood : Discus some of the traits associated with either a) Republican Motherhood or b) Abigail Adams and her proto-feminist activism.
Calculate the effective interest rate earned on investment : Sarah invested $240,000 to purchase a home. After 7 years, she sold the home for $330,000. Calculate the effective interest rate earned on this investment.
Why did they regard the pythagorean theorem : Why did the Pythagoreans believe that numbers were the key to understanding nature? Why did they regard the "Pythagorean Theorem" in particular so highly?

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the advantages of having global accounting

[Global accounting standards] Discuss the advantages and disadvantages of having global accounting standards from the perspective of the financial analyst.

  What is its cost of issuing preferred

Buoyant expects to net only $75 for each share issued. What is its cost of issuing preferred stock? The firm's marginal tax rate is 34 percent.

  What is the implied cost of equity capital

The dividend yield on the stock is 5% and it retains 60% of earnings. What is the implied cost of equity capital?

  Economic growth and which one limits economic growth

Describe the two basic types of markets and explain which market encourages economic growth and which one limits economic growth.

  What amount must you deposit each year

You want to have $25,000 in your savings account eight years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 4.75 percent interest, what amount must you deposit each year?

  Determine the total interest paid on the loan

You are borrowing $200,000 and making payments at the end of each month. For an annual interest rate ranging from 5% through 10% and loan durations of 10, 15, 2

  How much is annual cash flow associated with the perpetuity

A perpetuity with the first annual cash flow paid at the beginning of year 5 is equivalent to receiving $109,000 in 18 years' time. Assume that the perpetuity and the lump sum are of equivalent risk and that j12 = 14.32% pa is the appropriate interes..

  Repeat part a using the installment method

Indicate the amount and nature of income (revenue and expense) that Turner would recognize during 2010, 2011, and 2012 if it uses the completed-contract method. Ignore income taxes. Repeat Part a using the percentage-of-completion method. Repeat Part..

  Why should the federal regulators have approved the merger

Second, why or why not should the Federal Regulators have approved the merger? Goldey-Beacom College.

  How much should you be willing to pay for the stock

i. How much should you be willing to pay for the stock if you require a 16 percent return

  Explain the relationship between risk and strategy

Explain the relationship between risk and strategy and critically and examine how adapting can enable an organisation to achieve

  Compute the annual return

Avicorp has a $12.1 million debt outstanding, with a 6.2% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd