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2. The current price of an ABC share is $20.93. According to the company's last annual report, the board is planning to keep the annual

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2. The current price of an ABC share is $20.93. According to the company's last annual report, the board is planning to keep the annual dividend constant at $0.80 per share for a few years. a) Compute the forward dividend yield of ABC stock. b) What would happen to ABC's stock price and forward dividend yield if suddenly (i) the risk-free rate went up, (ii) investors became more uncertain about ABC's future, or (iii) ABC announced quarterly sales growth numbers that fall short of previous expectations and this made investors more pessimistic about ABC's future growth

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