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Treasury bills provide a 0.2% rate of return, which is not expected to change in the short term or medium term. The expected return on

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Treasury bills provide a 0.2% rate of return, which is not expected to change in the short term or medium term. The expected return on the stock market as a whole is 9% for the coming year. A share of company ABC currently trades for $75. As an analyst, you expect the price of these shares to increase to $79 in a year, and company ABC to pay dividends of $1.25 per share over the course of the next year. ABC's beta is 0.9. 1. What is the expected dividend yield of shares of ABC? 2. What is the expected capital gain rate of shares of ABC? 3. What is the expected rate of return of ABC? 4. Given its risk, what is the expected required rate of return on ABC? 5. What is the intrinsic value of ABC? 6. Do you recommend purchasing ABC, and why

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