ABZ Corp. just paid a dividend of $1.00 per share. The dividend is expected to grow 6% per year in perpetuity. The stock's beta is 0.85. The risk-free rate is 3%, and the market risk premium is 7%. The current stock price is $37 per share. Assume that one year from now the stock will be correctly valued.

What are the dividend yield, capital gain yield and expected return for the coming year?

Draw the Security Market Line and plot the stock on it. Be sure to label relevant points.