You will analyze three different stocks all of which have a


You will analyze three different stocks, all of which have a required return of 10% and a most recent dividend of $4.50 per share. Stocks A, B, and C are expected to maintain constant growth rates in dividends for the foreseeable future of 6%, 0%, and -3% per year respectively.

A] What is the dividend yield for each of these three stocks?

B] What is the expected capital gains yield?

C] What is the price of each stock?

D] Discuss the relationship among the various returns that you find for each of these stocks.

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Financial Management: You will analyze three different stocks all of which have a
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