Question: In the next 4 years ABC is expected to pay the following stream of dividends. D1=$5, D2=$3, and D3=S6, D4=$8 After that the dividends are

In the next 4 years ABC is expected to pay the following stream of dividends. D1=$5, D2=$3, and D3=S6, D4=$8 After that the dividends are expected to grow at a constant rate of 5% per year indefinitely. The required rate of return is R=12% 1) Find the current stock price ii) Find the capital gain yield in the first year III) Find the dividend yield in the 7th yea

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