What are its expected dividend yield and capital gains yield

Assignment Help Business Management
Reference no: EM131375841

Taussig Technologies Corporation (TTC) has been growing at a rate of 20 percent per year in recent years. This same growth rate is expected to last for another 2 years.

a. If D0 = $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? Answer in words only.

c. What will be TTC's dividend yield and capital gains yield once its period of supernormal growth ends?

(Hint: These values will be the same regardless of whether you examine the case of 2 or 5 years of supernormal growth; the calculations are very easy.)

d. Of what interest to investors is the changing relationship between dividend yield and capital gains yield over time?

Reference no: EM131375841

Questions Cloud

How an investigator prepares a criminal case for trial : Explain how an investigator prepares a criminal case for trial.Explain the proper courtroom demeanor needed for an investigator and how his/her demeanor, looks, and body language can affect a trial. Find an article from the Web in which an..
Analyze data sets and uncover important information : The paper must (a) apply and reference new learning to each of the ten course elements, (b) build upon class activities or incidents that facilitated learning and understanding, and (c) present specific current and/or future applications and relev..
How should refrigerant be transferred from a chiller : What could happen if you charge liquid refrigerant into a chiller that is under a deep vacuum?
Explain the importance of investigating : Explain the importance of investigating all near-misses, injuries, and fatalities, and discuss how incorporating the lessons learned from investigations can support cultural change throughout the emergency services.
What are its expected dividend yield and capital gains yield : 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? Answer in words only.
Effective fatality or injury investigation : Identify and discuss the basic functions commonly performed during an effective fatality or injury investigation.
What are the disadvantages of hot-water heating systems : Define hydronics. What was the common choice for hydronic piping in the past, and how is that changing?
Countertrade schemes to generate export revenues : How might a company make strategic use of countertrade schemes to generate export revenues? What are the risks associated with pursuing such a strategy?
How does a fan coil unit differ from a convector : Why is it important when working on electrical components such as pump motors to make sure that all of the water in the system has been removed?

Reviews

Write a Review

Business Management Questions & Answers

  Define the eurotunnel project scope, time schedule

These tools help to define the eurotunnel project scope, time schedule and cost and other unforeseen challenges that may arrised. In the eurotunnel project, challenges should monitored and handled till the completion of the project in order to mak..

  Financial budget problem

Assume a friend who tells you that she has a job that pays $1,100 every month (after tax); however, she is spending US$1,300 every month and taking on more credit card debt to meet her monthly bills.

  What is alice net present value of a mba

a. What is Alice's net present value of a MBA? b. Will Alice obtain her MBA?

  Record the adjusting entry

When supplies are purchased they are recorded as an asset. An end of period stock-take (count) revealed a closing balance of $12,000. There was no opening balance and during the period $22,000 of supplies were purchased. Record the adjusting en..

  Find alice reservation wage

1. Graph Alice's budget line. 2. Find Alice's reservation wage.

  Benefits and consequences to the worker

What are the benefits and consequences to the worker who participates in an organized strike - especially if it lasts several weeks or months?

  How often should a swot analysis

How often should a SWOT analysis be completed on a business? Do you thing it is a process that should be done once within the first year of being open, 3rd year, or 5th year? Explain your response.

  Define the number of product options available in the us

Define the number of product options available in the US consumer market. In virtually every product category

  Offensive tactic and a defensive tactic

Describe an offensive tactic and a defensive tactic that Samsung has used or should use to gain a competitive edge. Explain if these tactics were successful, if used by the firm in the past.

  Considering the two-factor theory

Considering the two-factor theory, should a manager ever spend more effort focusing on tasks rather than relationships with people? When is this necessary?

  User roles are necessary for linux

Why are user roles are necessary for Linux. How are these roles and permissions similar or different from other user types in other operating systems?

  Opportunity at ottc to build a new website

You have just been given the opportunity at OTTC to build a new website for the company to improve customer contact and service. Based on the services and products they offer think about how you will address customer service and how you will creat..

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