.- Consider four different stocks, A, B, C and D, all have a required return of 15 percent and a most recent dividend of 5 per share. Stocks A,B, and C are expected to maintain constant growth rates in dividends for the future of 5 percent, 0 percent, and 5 percent per year, respectively.

Stock D is a growth stock that will increase its dividend by 20 percent for the next 3 years and then maintain a constant 6 percent growth rate thereafter.

What is the dividend yield for each of these four stocks? What is the expected capital gains yield?

Using Excel