What is the dividend yield for each of these four stocks

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Reference no: EM131879546

Consider four different stocks, all of which have a required return of 18 percent and a most recent dividend of $3.05 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10.5 percent, 0 percent, and –5.25 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 12.5 percent growth rate, thereafter. 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.) Dividend yield Stock W % Stock X % Stock Y % Stock Z % What is the expected capital gains yield for each of these four stocks?

Reference no: EM131879546

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