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Consider four different stocks, all of which have a required return of 18 percent and a most recent dividend of $3.55 per share. Stocks W,

Consider four different stocks, all of which have a required return of 18 percent and a most recent dividend of $3.55 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 percent for the next two years and then maintain a constant 13.5 percent growth rate, thereafter. What is the dividend yield for each of these four stocks? What is the expected capital gains yield for each of these four stocks?

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