2. ABC's last annual cash dividend was $1.50 per share. Its current equilibrium share market price is S 15.75. The company is expected to grow at an annual rate of 5%. If your required rate of return is 15%, calculate for the coming year (a) the expected dividend yield and (b) the expected capital gains yield. 3. XYZ is in an extremely competitive market, competing with the likes of China and India. Financial analysts predict that both earnings and dividends will probably decline at a rate of 5% annually into the foreseeable future. If XYZ's last annual dividend was $2 per share, and if investors' required rate of return is 15%, calculate XYZ's share price in three years' time. 4. JNJ's stock is currently selling at $45.83 per share. The last cash dividend paid to shareholders of record was S2.50 per share. J NJ is a constant growth firm. If n vestors require a return of 16% on JNJ's stock, what do they believe JNJ's annual growth rate to be? 5. Adelphia, Inc. has 100,000 shares of preferred stock outstanding, the stock's par value is $50 por share. The stock pays a quarterly cash dividend of S1.25 per share. The current market price of Adelphia is $71.43. Calculate the nominal rate of return on Adelphia's preferred stock