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7. 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

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7. 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 10 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 2 years and then maintain a constant 12 percent growth rate, thereafter. The dividend yield for Stocks W, X, Y, and Z is percent, percent, percent, and percent, respectively The expected capital gains yield for the respective stocks is percent, percent, percent. percent, and Po = Do(1+g)/(R-8) R-(D/P.) +g

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