Question: ABC is concerned about the supply chain issues continue into 2 0 2 3 . Therefore, it announced today that dividends will be zero for

ABC is concerned about the supply chain issues continue into 2023. Therefore, it announced today that dividends will be zero for 2 years. In year 3, it will pay $1.50 per share and grow at 5% per year indefinitely.
a. What is the intrinsic price per share after announcement?
i. $20.29
ii. $18.28
iii. $22.52
iv. $23.58
v. $22.25
b. What is the dividend yield?
i.5%
ii.6%
iii. 0%
iv.7.39%
c. What is the expected capital gains yield?
i.5%
ii.6%
iii. 11%
iv. Indeterminate
d. What is the expected price per share next year?
i. $20.29
ii. $18.28
iii. $22.52
iv. $23.58
v. $22.25
 ABC is concerned about the supply chain issues continue into 2023.

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