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An issue of ABS Corp. common stocks most recent dividend is $2.75. Assume that this stock exhibits a constant dividend growth rate of 5.4%. A)

An issue of ABS Corp. common stocks most recent dividend is $2.75. Assume that this stock exhibits a constant dividend growth rate of 5.4%.

A) What is its current price if the markets rate of return is 7.4%?

B) What is the expected price of this stock one year from today?

C) What are the current and capital gains yields during the first year of stock ownership?

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