You are looking at 4 different stocks that all have a required return of 14% and all just paid a dividend of $3.55 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable futures of 6.5%, 0% and -5% per year, respectively. Stock Z is a growth stock that will increase its dividend by 30% for the next two years and then maintain a constant 7.5% growth rate thereafter.

a. What is the dividend yield for each of these stocks?

b. What is the expected capital gains yield?