Question
Consider four different stocks, all of which have a required return of 18.75 percent and a most recent dividend of $2.95 per share. Stocks W,
Consider four different stocks, all of which have a required return of 18.75 percent and a most recent dividend of $2.95 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 20.75 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? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
What is the expected capital gains yield for each of these four stocks? (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
16 1,00 points conside tour dmerent stocks all o atich have a equired eturn or 18.75 percent and a most recen d dend or s2.96 per share ocks and Y a e expected to mantan constant growth rates in cividends to respecthicly Stcck isa growth stock thar will nercasc its dividend by 20.75 porcent for the nox: two ycars and then maintan a constant 135 percent grown rato, thercatier e oreseea e Tuture or 11.5 percent, ercent and-6 percent per vear tan a constat 18.5 pcrcomt growrh ratc What is the dividenc yleld for each of these four stocks? (Do not round intermediate caleulations and enter your answers as a percent rounded to 2 decimal places, e.g 32.16. to 2 decimall places, e.g.32 Stock X Stock Y w pat ts thtt e cted taiptal yares ye!ld 'cr esach of thes: tur stoc es rounded to 2 decimal places, e-, 2.16. A ne ative answer should be ndicated b a minus sign. Laavo no cells blank be or n to er " wherever re ulrad. Do not round Interm@diate calculations 3nd enter your answers as a peron Sluck W Stock X Stnck Y Stuck Z
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