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1. A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and

1. A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44.

a. What is the total rate of return on the stock?

b. What are the dividend yield and percentage capital gain?

c. Now suppose the year-end stock price after the dividend is paid is $36. What are the dividend yield and percentage capital gain in this case?

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