32. Capital gains and incomes

Let's say there are four types of shares with a demand rate of 13% and the most recent dividend paid is $3.75 per share. Shares W, X and Y are expected to maintain dividend growth rates of 10 percent, 0 percent and -5 percent, respectively, for the foreseeable future period. Share Z is a growth stock, with dividends growing at 20% per year over the next two years and 5% per year thereafter.

a. What is the dividend yield on each of your shares?

b. What is the expected capital gain?

c. Explain the relationship between the returns on the stock