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1) a) The following information for ABC Inc. over the past four years. Earnings are projected to grow at 11% over the next year. What

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1) a) The following information for ABC Inc. over the past four years. Earnings are projected to grow at 11% over the next year. What are the high and low target stock prices over the next year? (7 marks) Year 1 Year 2 Year 3 Year 4 High Price 28.99 26.55 32.52 39.25 Low Price 18.89 19.28 24.35 23.52 EPS 1.33 1.58 1.78 1.99 b) Assume that ABC Inc's stock is currently selling for $40 and they just paid a $2 dividend and dividends are expected to grow at 6% per year. What is the dividend yield? What is the capital gains yield? What is the required return

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