Consider four different stocks, all of which have a required return of 18.25 percent and a most recent dividend of $3.35 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 11.5 percent, 0 percent, and -6 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20.25 percent for the next two years and then maintain a constant 13.5 percent growth rate, thereafter.

Requirement 1: Whatis the dividend yield for each of these four stocks?

	Dividends Yield
Stock W	%
Stock X	%
Stock Y	%
Stock Z	%

Requirement 2: What is the expected capital gains yield for each of these four stocks?

	Capital Gains Yield
Stock W	%
Stock X	%
Stock Y	%
Stock Z	%