Problem Set #$15-$ due Monday, Mav$6,2024$@ $8$AM

$($circle your final answers$)$

ABC, Inc. just paid a dividend of $$4$ per share on its stock. The dividends are expected to grow at a constant rate of $5\%$ per year, indefinitely.

$1$a$.$ If investors require a return of $8\%$ on this stock, what is the current price?

$1$b$.$ What will be the price of the ABC, Inc. stock $($from above$)$ in $6$ years?

DEF Corporation's stock is trading at $$42$ per share. The annual dividend is expected to be $$2.$ If you can sell the stock for $$48$ in a year, what is your:

$2$a: Dividend Yeld $\{$wh

$2$b: Capital Gains Viald $(9\mathrm{.}6)$

$2$c: Total Return $(\%\}$

Name $q,$

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