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1) Lets say you bought the stock at $83.95 and you sold the stock at $98.05 at the end of the year. The dividend per

1) Lets say you bought the stock at $83.95 and you sold the stock at $98.05 at the end of the year. The dividend per share is $2. What is the dividend yield (use your answer from 1a above), capital gain(loss), and total percentage return?

2) If the dividend per share is $2 which is expected to grow by 5.0% for the next three years, and then grow by 2.5% in perpetuity afterwards, and the expected return on the stock is 7.25%, what is the value of the stock today?

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