2)

A stock is selling today for $75 per share. At the end of the year, it pays a dividend of $6 per share and sells for $78.

a.What is the total rate of return on the stock?(Enter your answer as a whole percent.)

Rate of return%

b.What are the dividend yield and percentage capital gain?(Enter your answers as a whole percent.)

Dividend yield%Capital gains yield%

c.Now suppose the year-end stock price after the dividend is paid is $69. What are the dividend yield and percentage capital gain in this case?(Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

Dividend yield%Capital gains yield%

d.Is there any change in the dividend yield calculated in parts (b) and (c)?

The dividend yield is(Click to select)

affected

unaffected

; it is based on the(Click to select)

initial price

final price

.