Q 2.6. You purchase a stock for $40 per share today. It will pay a dividend of
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Q 2.6. You purchase a stock for $40 per share today. It will pay a dividend of $1 next month. If you can sell it for $45 right after the dividend is paid, what would be its dividend yield, what would be its capital gain (also quoted as a capital gain yield), and what would be its total holding rate of return?
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