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Consider four different stocks, all of which have a required return of 13 percent and a most recent dividend of $3.75 per share. Stocks W.

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Consider four different stocks, all of which have a required return of 13 percent and a most recent dividend of $3.75 per share. Stocks W. X and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and -5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 5 percent growth rate thereafter. a. What is the dividend yield for each of these four stocks? (Do not round intermediate calculations and enter your answers as a percent rounded to 1 decimal place, e.g. 32.1.) b. What is the expected capital gains yield for each of these four stocks? (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be Indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 1 decimal place, e.g. 32.1.) Dividend yield % % 1 % Stock W dividend yield Stock X dividend yield Stock y dividend yield Stock Z dividend yield b. Stock W capital gains yield Stock X capital gains yield Stock y capital gains yield Stock Z capital gains yield @ 101. * ?ml IMA wl

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