Video Excel Activity: Nonconstant Growth and Corporate Valuation Taussig Technologies Corporation (TTC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to gn = 5%. 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. X Download spreadsheet Nonconstant Growth and Corporate Valuation-afc098.xlsx a. If Do = $1.30 and rs = 8%, what is TTC'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 TTC'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 to $ per share.
Video Excel Activity: Nonconstant Growth and Corporate Valuation Taussig Technologies Corporation (TTC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to gn = 5%. 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. X Download spreadsheet Nonconstant Growth and Corporate Valuation-afc098.xlsx a. If Do = $1.30 and rs = 8%, what is TTC'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 TTC'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 to $ per share.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Excel Activity: Nonconstant Growth and Corporate Valuation
Taussig Technologies Corporation (TTC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last for another 2
years, then decline to gn = 5%.
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.
X
Download spreadsheet Nonconstant Growth and Corporate Valuation-afc098.xlsx
a. If Do = $1.30 and rs = 8%, what is TTC'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 TTC'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
to $
per share.
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