ABC Industries will pay a dividend of $2 next year on their common stock. The company predicts that the dividend will increase by 5% each year indefinitely. What is the dividend yield if the stock is selling for $50 a share? What is the cost of equity? 2. The dividends are expected to grow at 7% per year in the future. ABC's common stock sells for $23 per share and its last dividend was $2. What is the cost of equity? 3. ABC just paid dividends of $1.50 on their common stock. The company expects the growth rate to be 3% infinintely. If today's price of the stock is $40, what is the dividend yield and what is the required rate of return on stock (cost of equity)? 4. The common stock of ABC Company has a beta of 1.10. If the market risk premium is 10% and the risk-free rate is 5%, what is the cost of equity? 5. The common stock of ABC Company has a beta of 1.10. If the expected return on the market is 10% and the risk-free rate is 5%, what is the cost of equity?