EDIT: Didn't realize you asked for $y^k$, by bad. I just read past and assumed the obvious.
You can do the same as my first response:
$${\left( {1 + x} \right)^y} = f(y)$$
Since the $k$th derivative will be ${{{\log }^k}\left( {1 + x} \right)}$ you have
$${\left( {1 + x} \right)^y} = \sum\limits_{k = 0}^\infty {\frac{{{{\log }^k}\left( {1 + x} \right)}}{{k!}}} {y^k}$$
I don't think you can go any further without spending a long time with some pen and paper.
Assume
$${\left( {1 + x} \right)^{\alpha}} = \sum\limits_{k = 0}^\infty {{a_k}{x^k}} $$
Since if two series
$$\eqalign{
& \sum {{a_k}{{\left( {x - a} \right)}^k}} \cr
& \sum {{b_k}{{\left( {x - a} \right)}^k}} \cr} $$
sum up to the same function then
$${a_k} = {b_k} = \frac{{{f^{\left( k \right)}}\left( a \right)}}{{k!}}$$
for every $k \leq 0$, we can assume:
$$a_k = \dfrac{f^{(k)}(0)}{k!}$$
Putting $y = {\left( {1 + x} \right)^{\alpha}}$ we get
$$y'(0) = \alpha$$
$$y''(0) = \alpha(\alpha-1)$$
$$y'''(0) = \alpha(\alpha-1)(\alpha-2)$$
$$y^{{IV}}(0) = \alpha(\alpha-1)(\alpha-2)(\alpha-3)$$
We can prove in general that
$$y^{(k)}= \alpha(\alpha-1)\cdots(\alpha-k+1)$$
or put in terms of factorials
$$y^{(k)}(0)= \frac{\alpha!}{(\alpha-k)!}$$
This makes
$$a_k = \frac{\alpha!}{k!(\alpha-k)!}$$
which is what we wanted.
$${\left( {1 + x} \right)^\alpha } = \sum\limits_{k = 0}^\infty {\alpha \choose k} {{x^k}} $$
You can prove this in a more rigorous manner by differential equations:
- Set $f(x) = \displaystyle \sum\limits_{k = 0}^\infty {\alpha \choose k} {{x^k}}$ and prove the radius of convergence is 1.
- Show that $f(x)$ is the solution to the ODE $$y' - \frac{\alpha }{{x + 1}}y = 0$$ with initial condition $f(0)=1$.
- By the theorem that the solution to the linear equation
$$y'+P(x)y=R(x)$$
with initial conditions $f(a) = b$ is unique, you can prove the assertion. (prove that
$y = {\left( {1 + x} \right)^{\alpha}}$ also satifies the equation and you're done.)