Round all calculations to at least 4 decimal places, Use 2 decimals in your answers (for example, 100.21) and 2 decimals in percent (for example, 10.12\%). Problem 7. ABC stock is expected to pay a dividend of $1.45 per share 1 year from now. Investors expect dividends to grow 5% per vear forever, and the required return on this stock is 16%. (a) What is the price of the stock today? Put your answer here (b) Suppose that after one year the stock pays the expected dividend, and then the company announces some unexpected news. Because of the announcement investors now expect a growth rate of 4% per year forever from this stock. How much could you sell the stock for immediately after the news is announced? Put your answer here (c) What is your rate of return on a one-year investment in this stock? Put your answer here Problem 8. You buy a share of ABC Ine today for $70. One year later, the stock pays a dividend of $2/ share and you sell the share for $75. (a) What was your dividend yield? Put your answer here b) What was your capital gain yield? Put your answer here c) What was your total retum on this investment? Put your answer here