Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $3.80 per share. stocks w, x, and y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, 0 percent, and %u20135 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 15 percent growth rate thereafter.

what is the dividend yield for each of these four stocks? (do not round intermediate calculations and round your final answers to 1 decimal places. (e. g., 32.1))

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 amount should be indicated by a minus sign. do not round intermediate calculations and round your final answers to 1 decimal places. (e. g., 32.1))

capital gains yield
stock w %
stock x %
stock y %
stock z %

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?