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 required rate of return?

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? What is the dividend yield?