the YYY and ZZZ company are two firms whose business risk are the same but that have diffrent dividend policies

Question 2: (25 marks) The YYY and Zz Company are two firms whose business risk are the same but that h different dividend policies. YYY pays no dividend, whereas ZZZ has an expected dividend yield of 4%. Suppose the capital gains tax rate is zero, whereas the income tax rate is 35% YYY has an expected earnings growth rate of 15% annually, and its stock price is expected to grow at this same rate. If the after-tax expected returns on the two stocks are equal, what is the pre-tax required return on ZZZ stock? (Ctrl