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Consider four different stocks, all of which have a required return of 2 0 percent and a most recent dividend of $ 3 . 1

Consider four different stocks, all of which have a required return of 20 percent and a
most recent dividend of $3.10 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 12 percent
growth rate thereafter.
What is the dividend yield and 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.)
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