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Help Please! Problem 7-31 Capital Gains versus Income [LO 1) Consider four different stocks, all of which have a required return of 18 percent and

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Problem 7-31 Capital Gains versus Income [LO 1) Consider four different stocks, all of which have a required return of 18 percent and a most recent dividend of $3.05 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10.5 percent, o percent, and -5.25 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 12.5 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 2 decimal places, e.g., 32.16.) b. 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 "O" wherever required. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a % % % 96 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 96 96 96 %

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