constant growth rates in dividends for the foreseeable future of 10%, 0%, and 25% per year, respectively. Stock Z is a growth stock that will increase its dividend by 20% for the next two years and then maintain a constant 12% growth rate thereafter.   What is the dividend yield for each of these four stocks? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)                       dividend yield stock w stock x stock y stock z What is the expected capital gains yield for each of these four stocks

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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Consider four different stocks, all of which have a required return of 17% and a most recent dividend of $4.50 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10%, 0%, and 25% per year, respectively. Stock Z is a growth stock that will increase its dividend by 20% for the next two years and then maintain a constant 12% growth rate thereafter.

 

What is the dividend yield for each of these four stocks? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

                      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 "0" wherever required. Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places.)

capital gain yeild

stock w

stock x

stock y

stock z

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