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25. 00 points Problem 7-31 Capital Gains versus Income [LO 1) Consider four different stocks, all of which have a required return of 16 percent

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25. 00 points Problem 7-31 Capital Gains versus Income [LO 1) Consider four different stocks, all of which have a required return of 16 percent and a most recent dividend of $2.80 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 8 percent, O percent, and -5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate, thereafter. Requirement 1 What is the dividend yield for each of these four stocks? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Dividend yield Stock W Stock X Stock Y Stock Z Requirement 2: What is the expected capital gains yield for each of these four stocks? (Do not round intermediate calculations. Negative amounts should be indicat certain to enter "" wherever required. Round your answers to 2 decimal places (e.g., 32.16).) ed by a minus sign. Leave no cells blank - be Capital gains yield Stock W Stock X Stock Y Stock Z

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