5. Answer the following questions regarding dividend discount models:

a. What are the two components of most stocks expected total return?

b. What is the general formula to calculate the capital gains yield and the dividend yield of a stock (one that holds when firms dividends are growing at a constant rate and when they are not)?

c. Write out and explain the dividend discount model formula for a constant growth stock. What is the capital gains yield and dividend yields for a constant growth stock?