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Problem 8 - 3 2 Capital Gains versus Income [ LO 1 ] Consider four different stocks, all of which have a required return of
Problem Capital Gains versus Income LO
Consider four different stocks, all of which have a required return of percent and a
most recent dividend of $ per share. Stocks and are expected to maintain
constant growth rates in dividends for the foreseeable future of percent, percent,
and percent per year, respectively. Stock is a growth stock that will increase its
dividend by percent for the next two years and then maintain a constant 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 O 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 decimal place, eg
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