Because of the pandemic, ABC firm announced that it will not increase its dividends next year; dividends will remain at $$1\mathrm{.}50$ per share next year. After that it expects to increase its dividends at $5\%$ per year forever.

a$.$ What is the expected change in price from the announcement?

i$.$ The price drops by $4\mathrm{.}76\%$

ii$.$ The price remains the same

iii. The price drops by $5\mathrm{.}00\%$

iv$.$ The price drops by $6\mathrm{.}00\%$

b$.$ What is the dividend yield?

i$.5\mathrm{.}7143\%$

ii$.6\mathrm{.}0000\%$

iii. $5\mathrm{.}0000\%$

iv$.6\mathrm{.}3000\%$

c$.$ What is the expected capital gains yield?

i$.5\mathrm{.}7143\%$

ii$.6\mathrm{.}0000\%$

iii. $5\mathrm{.}0000\%$

iv$.6\mathrm{.}3000\%$

d$.$ What is the expected price per share next year?

i$.$ $$26\mathrm{.}25$

ii$.$ $$27\mathrm{.}56$

iii. $$27\mathrm{.}83$

iv$.$ $$25\mathrm{.}00$