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What is ttc stock worth today

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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 = 6%.

(a) If D0 = $1.60 and rs = 10%, what is TTC's stock worth today? What are its expected dividend, and capital gains yields at this time, that is, during Year 1?

(b) Now assume that TTC's period of super-normal growth is to last for 5 years rather than 2 years. How would this affect the price, dividend yield, and capital gains yield? Answer in words only.

Reference no: EM132386411

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