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need help answering these Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of $2.90
need help answering these
Consider four different stocks, all of which have a required return of 18.5 percent and a most recent dividend of $2.90 per share. Stocks W,X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 11 percent, 0 percent, and 5.5 percent per year, respectively. Stock Z is a growth stock that will increase its dividend by 20.5 percent for the next two years and then maintain a constant 13 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 " 0 " wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) (8) Answer is complete but not entirely correct Step by Step Solution
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