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Problem 8-32 Capital Gains versus Income [LO1) Consider four different stocks, all of which have a required return of 12 percent and a most recent

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Problem 8-32 Capital Gains versus Income [LO1) Consider four different stocks, all of which have a required return of 12 percent and a most recent dividend of $3.90 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, O percent, and -4 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 10 percent growth rate thereafter What is the dividend yield for each of these four stocks? (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place, e.g., 32.1.) Dividend yield Stock W Stock X Stock Y Stock Z What is the expected capital gains yield for each of these four stocks? (Leave no cells blank be certain to enter "O" wherever required. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place, e.g., 32.1.) Capital gains yield Stock W Stock X Stock Y Stock Z

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