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If ABCs expected dividend payment in the coming year will be $4.25 (D 1 = $4.25), the dividend growth rate, g (which is constant) =

If ABCs expected dividend payment in the coming year will be $4.25 (D1 = $4.25), the dividend growth rate, g (which is constant) = 2.5%, and its current stock price, P0 = $135.00, what is the stocks expected dividend yield for the coming year?

3.15%

3.23%

10.63%

7.87%

3.07%

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