What is its expected dividend yield at this time

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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

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