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1. A project offers a net return of $25 for an investment of $1,000. What is the rate of return? 2. Is 10 the same

1. A project offers a net return of $25 for an investment of $1,000. What is the rate of return?

2. Is 10 the same as 1,000%?

3. 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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