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Consider four different stocks, all of which have a required return of 1 1 % and a most recent dividend of $ 3 . 5
Consider four different stocks, all of which have a required return of and a most recent dividend of $ per share. Stocks W X and Y are expected to maintain constant growth rates in dividends for the foreseeable future of and per year, respectively. Stock Z is a growth stock that will increase its dividend by for the next two years and then maintain a constant growth rate thereafter.
a For all four stocks, what is the dividend yield and the expected capital gains yield? Explain your results for each stock.
b Identify the relationship between the various returns, in terms of growth and income, that you find for each of these stocks. Can you please show all the steps and formuilas used in this thank you
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